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Gas supply to Kawas, Gandhar projects: Shell drops out, four in fray

Saturday, 15 May 2004
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Royal Dutch/Shell has not bid for gas supplies to NTPC's Kawas and Gandhar power projects, with total capacity of 1,300 MW At the close of the last date of the first stage of bidding, four bidders were in the fray -- Reliance Industries, Petronas, Yemen-Totalfina LNG and Petronet LNG.

Shell was keen in the bidding process, due to which the last date of submission of bids was revised. Shell was to bid for the entire supply chain, from sourcing LNG to supplying regassified LNG from its upcoming Hazira terminal.

Reliance Industries has offered to supply gas from its KG basin find. Petronas and Yemen-Totalfina have offered to deliver gas up to the port. Petronet LNG has offered only its LNG terminal.

NTPC therefore is left with three options:

  1. Gas from Reliance Industries
  2. LNG from Petronas +  R-LNG from Petronet LNG
  3. LNG from Yemen-Totalfina LNG + R-LNG from Petronet LNG

The bids are reportedly being scrutinized, and price bids are likely to be opened on 21 May 2004. Bids were invited for supplying 3 million tpa of LNG, translating to 12 mmscmd of gas.

Related News:

Shell may tie up with Total for NTPC projects (8-Apr-04)
NTPC extends bid submission date (22-Apr-04)
Bidding conditions relaxed (11-May-04)

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