The Hindu : Business : NTPC mulls more tie-ups for LNG import

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Tuesday, Aug 14, 2007
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NTPC mulls more tie-ups for LNG import

Special Correspondent

Proposes to participate in NELP

Plans to build coal blocks as buffer
Ministry to set up Project Management Board

NEW DELHI: National Thermal Power Corporation is looking at the possibility of entering into formal agreements with various countries to import liquefied natural gas (LNG) for running its power plants coming up during the XI and XII Plans.

NTPC had already signed a memorandum of understanding (MoU) with the Nigerian Government that provides for import of three million tonnes of LNG annually on a long-term basis, subject to availability, for 25 years at a reasonable price. NTPC plans to come up with 4,266 MW of gas-based power plants by 2012 for which it has decided to explore options abroad. The corporation is now holding negotiations with various countries for not only LNG but also coal blocks to build a buffer for the future.

Official sources said that NTPC had also initiated steps in exploring the possibility of acquiring oil and gas blocks through participation in New Exploration Licensing Policy (NELP). The Power Ministry was working on setting up a National Power Project Management Board for monitoring the progress and to ensure timely commissioning of the capacity addition and associated transmission projects.

On the other hand, sources said that the Working Group on Power for the XI Plan had estimated a total fund requirement Rs. 10,31,600 crore for the power sector as a whole. For creating the projected capacity addition, the fund requirement had been assessed at Rs. 4,10,900 crore, they added.

Out of the proposed capacity addition of 78,500 MW during the XI Plan, 1,870 MW had already been commissioned and another 50,975 MW was under construction, he said. “With the projected capacity in place and through energy conservation measures, the gap between demand and supply of electricity is likely to be bridged gradually during the course of the XI Plan,” sources said.

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