State-owned NTPC Ltd and Gail (India) Ltd have decided to join hands for setting up new gas-based power projects in the country and abroad.
Under an agreement being thrashed out by the two companies, NTPC will also offer equity to GAIL in its upcoming projects besides setting up projects via the joint venture route. The two companies have also agreed to pursue joint opportunities in the exploration and production (E&P) sector and to co-operate in gas sourcing (import of LNG from abroad).
Confirming the move, a senior GAIL official said, “GAIL and NTPC have a long working association as seller and buyer of natural gas. The two have agreed to join hands for pursuing opportunities of mutual interest in natural gas and the power sector.”
The NTPC spokesperson refused comments saying the matter is under discussion.
A memorandum of understanding (MoU) is expected shortly between the two companies, the official said. Under the MoU, GAIL and NTPC will explore opportunities to set up grass-roots gas-based power plants in India as well as in other countries jointly.
In addition, NTPC would explore possibilities of GAIL’s equity participation in the upcoming power projects as well as expansions.
“Cooperation in commissioning of LNG Terminal of RGPPL (Ratnagiri Gas and Power Private Limited) besides exploring the feasibility of capacity expansion of RGPPL’s LNG terminal and power block is also part of the (proposed) MoU.”
NTPC, with an installed capacity of 33,194 MW, has 15 coal based and 7 gas based power stations across the country. In addition, NTPC has set up five coal based stations and one gas/naphtha based station through the JV route.
GAIL and NTPC are joint promoters of RGPPL, an integrated 1,940-MW capacity power plant along with a 5-MMTPA LNG regassification terminal.
Further, GAIL and NTPC are partners with 10% participating interest each in an E&P block located in Andaman deep water which was awarded in the NELP-VIII bidding round.