09-19-2005, 02:34 AM
<b>Power from Dabhol at Rs 2.50/unit</b>
MUMBAI: Ratnagiri Gas & Power Pvt Ltd (RGPPL), formed to run the troubled 2,150 MW Dabhol power project, is planning to set Rs 2.50 per unit as the threshold level for the power cost for the first phase of the project.
RGPPL had planned to sell power from the project at Rs 2.30 a unit, with fixed cost at 93 paise, regassification cost at 17 paise, and fuel cost at Rs 1.20 per unit. However, with rising global gas prices, the per unit cost is likely to escalate.
RGPPL, which plans to complete Dabhol project in three blocks of two phases, will start commercial operations of the first phase on September 1, 2006.
"GAIL has finalised 0.7 million tonne natural gas supply from Qatar for the first phase. The synchronisation of the project will be done in July (2006) and the commercial operation would start from September 1 next year," a senior RGPPL official told TOI.
When contacted, GAIL officials refused to give details of the price at which gas supply from Qatar has been tied up. "We have fixed the supply. A formal agreement would be signed any day," a GAIL official said.
According to RGPPL officials, GAIL will have to procure gas at $3.70 per million British Thermal Unit (BTU) to maintain the earlier stated power cost of Rs 2.30 per unit for the project.
With spot prices of natural gas zooming high due to shortage, GAIL may fetch gas at competitive prices only if the supply is from a 25-30 years contract, according to analysts.
However, if gas is procured at higher prices, the burden of rise in power cost would have to be borne by the Maharashtra State Electricity Board (MSEB).
MSEB, it is learnt, is ready to bear the higher cost up to Rs 3.0-3.30 per unit. However, an RGPPL official said, "For the first phase, the power cost will not go beyond Rs 2.50 per unit."
In the first phase, 760 MW unit of the Dabhol plant would be revived. The project was running until May 2001, when it was shut down due to tariff disputes between MSEB (the sole user) and the then DPC owner, Enron.
The second phase will involve two blocks of 740 MW each. RGPPL requires 2.1 million BTU of LNG for the Dabhol project.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
MUMBAI: Ratnagiri Gas & Power Pvt Ltd (RGPPL), formed to run the troubled 2,150 MW Dabhol power project, is planning to set Rs 2.50 per unit as the threshold level for the power cost for the first phase of the project.
RGPPL had planned to sell power from the project at Rs 2.30 a unit, with fixed cost at 93 paise, regassification cost at 17 paise, and fuel cost at Rs 1.20 per unit. However, with rising global gas prices, the per unit cost is likely to escalate.
RGPPL, which plans to complete Dabhol project in three blocks of two phases, will start commercial operations of the first phase on September 1, 2006.
"GAIL has finalised 0.7 million tonne natural gas supply from Qatar for the first phase. The synchronisation of the project will be done in July (2006) and the commercial operation would start from September 1 next year," a senior RGPPL official told TOI.
When contacted, GAIL officials refused to give details of the price at which gas supply from Qatar has been tied up. "We have fixed the supply. A formal agreement would be signed any day," a GAIL official said.
According to RGPPL officials, GAIL will have to procure gas at $3.70 per million British Thermal Unit (BTU) to maintain the earlier stated power cost of Rs 2.30 per unit for the project.
With spot prices of natural gas zooming high due to shortage, GAIL may fetch gas at competitive prices only if the supply is from a 25-30 years contract, according to analysts.
However, if gas is procured at higher prices, the burden of rise in power cost would have to be borne by the Maharashtra State Electricity Board (MSEB).
MSEB, it is learnt, is ready to bear the higher cost up to Rs 3.0-3.30 per unit. However, an RGPPL official said, "For the first phase, the power cost will not go beyond Rs 2.50 per unit."
In the first phase, 760 MW unit of the Dabhol plant would be revived. The project was running until May 2001, when it was shut down due to tariff disputes between MSEB (the sole user) and the then DPC owner, Enron.
The second phase will involve two blocks of 740 MW each. RGPPL requires 2.1 million BTU of LNG for the Dabhol project.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->