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Gas supplies to Bidadi power plant: Benchmark altered

Wednesday, 14 Jul 2004
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Karnataka Power Corporation has reportedly asked gas suppliers shortlisted for the upcoming 1,400 MW gas-based Bidadi power project to benchmark their rates to NTPC's Kawas and Gandhar power projects.

Three gas suppliers have been shortlisted for the Bidadi power project -- Petronet LNG, Petronas of Malaysia and Reliance Industries.

For the 15-year gas supply contract, benchmark rates have reportedly been fixed at $3.26 per million BTU, inclusive of duties and local taxes. KPCL had earlier placed indicative rates at $4.3 per million BTU. With the new benchmark rates, levellised tariffs are expected to fall to Rs.2.50 per unit (kwh). This is assuming the standard energy requirement of 0.0034 million BTU for one kwh of electricity.

KPCL's Bidadi power station would require around 1.48 million tpa of LNG or 6.72 mmscmd of gas, assuming a plant load factor of 85 per cent.

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