|
| RNRL in race to hire LNG terminal adjacent to Dabhol plant |
| Press Trust of India / New Delhi Jun 16, 2009, 15:42 IST |
|
Anil Ambani Group firm Reliance Natural Resources Ltd (RNRL) has joined the race to hire the LNG terminal adjacent to the Dabhol power plant to import liquefied natural gas (LNG) cargoes.
RNRL joins the likes of Reliance Industries, Essar Oil and Indian Oil for hiring the five-million-tonne-a-year capacity LNG import facility on the basis of toll.
"There are eight companies (who put in expression of interest)... RNRL is one of them," said A K Ahuja, Managing Director of Ratnagiri Gas and Power Pvt Ltd, the company that operates the nation's biggest gas-fired power plant and the adjacent LNG import facility.
Others in the fray include state power utility NTPC and GMR.
Ahuja said RGPPL will frame bidding criteria and call for financial bids by next month.
RGPPL does not need the import facility as the Government has already allocated natural gas from RIL's Bay of Bengal KG-D6 fields to fire the 2,150 MW power plant.
The LNG terminal is mechanically complete but commercial commissioning has been put off till September. The Ratnagiri port has no breakwater, which makes docking vessels impossible during monsoon.
"Also, RGPPL has not executed a port operation agreement with Shipping Corp of India (SCI) or any other authorised vessel operator. The terminal can be commissioned only when we have such an agreement," another official said.
"Since there is no breakwater, only one million ton capacity will be available for leasing in 2009-10," the official said.
RGPPL would earn Rs 140 crore annually as toll fee, which is likely to be around $0.60 per million British thermal unit of imported fuel.
"Our operation cost is around Rs 120 crore, so we will make Rs 20 crore of profit on import of one million ton of LNG. When import goes up, our profits will also rise as the operation cost will remain around the same," he said.
He said the commissioning of the LNG receipt and regassification terminal has been delayed to September/October as the rough sea makes it difficult for ships to dock at the port during the monsoon.
RGPPL currently receives regasified LNG under a 5.8 mmcmd supply agreement with Petronet. However, the company takes only 2.8 mmcmd due to persistent equipment problems at the power plant. The deal with Petronet is set to expire in September, after which it will start receiving gas from KG-D6.
Dabhol would be India's third LNG terminal after Petronet LNG Ltd's Dahej facility in Gujarat and Royal Dutch Shell Plc's Hazira plant, also in the same state.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
