MUMBAI�India's state-owned electric power generator, National Thermal Power Corp. (NTPC), said this week it is ready to ink an agreement to form Gujarat Pipavav LNG Ltd., a joint venture company that will build a gas terminal project for 25 billion rupees ($575 million).
NTPC will hold a 26% equity stake in the project. Its partners will be BG PLC and the Gujarat-based Sea King Infrastructure Ltd., each with a 25% stake. Another 24% interest will be picked up by either the Gujarat state government or financial institutions.
The project, with a capacity of 5 million tonnes/year, is scheduled for commissioning by 2003.
"The liquefied gas from the proposed terminal will be used at our Kawas and Gandhar power projects," said R.D. Gupta, NTPC's executive director for the western region. "Our total [annual] requirement for these projects will be 1.5 million tonnes of gas." Until this terminal is completed, the Kawas and Gandhar generating plants will use naphtha for fuel.
Gupta says NTPC has already short-listed potential gas suppliers for the LNG terminal. NTPC also has picked up a 10% equity interest in the Petronet LNG terminal projects at Dahej and Cochin, which will have a combined capacity of 7.5 million tonnes/year.
NTPC has proposed generating capacity additions of nearly 4,280 Mw through the end of 11th 5-year plan (2007-12), with a total investment of 200 billion rupees.
The total capacity addition through the end of the 10th 5-year plan would be 2,620 Mw, comprising the Kawas and Gandhar gas projects, each 650 Mw, and the 1,320 Mw Sipat project, based on supercritical boiler technology. During the 11th plan, NTPC would add 1,660 Mw, comprising 1,060 Mw in the Vindhyachal Stage III project and 600 Mw at Sipat.