The stage is set for generation of electricity using gas as feedstock at the Dabhol power plant beginning second week of August once promoters sort out payment issues.
GAIL India, an equal promoter in Ratnagiri Gas and Power Pvt Ltd (RGPL) — the company which owns the Dabhol power plant — on July 10 transported the first lot of gas to the plant through a newly built 577-km pipeline from Dahej in Gujarat, but the plant could not take delivery of the gas supply as RGPPL could not provide guarantees for payment for the fuel.
GAIL (India) Ltd chairman and managing director U.D. Choubey said the company is in talks with Sonatrach of Algeria to buy 2.5 million to 5 million tonnes of liquified natural gas annually. “We are hoping to get the gas for Dabhol power plant. So, we are looking at getting it by
the end of 2010 or early 2011 once Dabhol plant's LNG receipt facility is fully completed,” he added.
The 740-MW Block-I would switch to gas in about two weeks time, while a similar capacity Block-II would come on gas after eight weeks. The 670-MW Block-III is scheduled to go on gas from December 15.
Petronet LNG Ltd is importing gas in liquefied form (LNG) in ships from RasGas of Qatar at its Dahej terminal under a short-term deal. After re-gassification, the fuel is transported through GAIL’s pipeline to the project.
Choubey said GAIL was ready to jointly acquire the LNG terminal at Dabhol with NTPC Ltd. “We are open to jointly taking over the LNG terminal. We jointly hold equity in the venture,” he stated. He said the company was looking at having long term contract for gas beyond 2009.