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Dabhol starts drawing Reliance gas

Last Updated: Wednesday, September 30, 2009 - 19:42

New Delhi: The Dabhol power plant on Wednesday started buying natural gas from Reliance Industries to cut electricity generation cost at the country`s largest gas-fired unit.

"We started drawing (RIL`s) KG-D6 gas from today. The volumes were around 4.5 million standard cubic meters per day," said A K Ahuja, Managing Director of Ratnagiri Gas and Power Pvt Ltd, the company that runs the 2,150 MW power plant and adjoining LNG receipt facility in Maharasthra.

The government had this month more than doubled RGPPL`s
allocation from KG-D6 to 5.67 million standard cubic meters
per day that will help generate about 1,000 MW of electricity.

"We are currently operating three gas turbines producing
920-930 megawatt of electricity. We will add another 320 MW
turbine by November-end, when the drawal would increase to
5.6 mmscmd," he said.

RGPPL was initially allocated 2.7 mmscmd of gas for the
period between April and September but the company had not
drawn even a single unit as it had a running contract with
Petronet LNG Ltd to buy imported liquefied natural gas.

It paid a burner-tip price of USD 7.8 per million British
thermal unit for the regassified-LNG sourced from Petronet.

"The delivered price of KG-D6 gas would be USD 6.2 per
mmBtu," Ahuja said adding the cost of electricity generation
will come down to about Rs 4 per unit from Rs 4.70 earlier.

Bureau Report

First Published: Wednesday, September 30, 2009 - 19:42

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