Ril- Bpin Talks With The Petroleum Industry To Supply Gas To Andhra

Business Theintrusive power cut situation in Andhra Pradesh has left everyone jittery, uncovering solutions to resolve the problem at the quickest. The state is presently in talks with RIL-BP to supply long- term Liquefied Natural Gas (LNG) to five major power producers over there including GMR, GVK, Konaseema Gas, Sravanthi Energy and LancoInfratech. RIL- BP via their joint venture India Gas Solutions (IGS) between the two companies will offer the term sheet if things fall into place. According to industry specialists, BP will buy gas from liquidationprojects globally where it has its own stake. This includes Indonesias Bontang, Abu Dhabis ADGAS, Australias North West Shelf and Atlantic LNG of Trinad and Tobago. The price IGS quoted a price of $ 9.5 mBtu for LNG that can even surge up to $10.63 for ex-regasification that is double the price of its gas from KGD6 block, where it accounts to be $4.32 per mBtu. Many power plants based on gas have witnessed muted growth owing to the shortage of short-term power supply. With alternative fuels like spot LNG turning out to be very expensive, many companies are in a fix. With the current spot price of LNG accounting to be $17-18 per mBtu, IGS has high chances of winning the deal. Industry experts claim that it is not viable for companies to shut down their activities and hence will be forced tobuy LNG even if it is exorbitant. Numerous companies including GVK and GMR have witnessed a nosedive in their earnings with the gas-based power plants operating at lesser than 40% capacity utilization. GVK attributed a 29% fall in revenue in the quarter ended June 2012 with respect to three of its gas plants. Besides, GMR mentioned a loss of Rs. 27 crore in profit after tax before minority in its energy division. The company considered the unavailability of sufficient gas in gas plants at Kakinada and Vemagiri as the cause of their losses. Also, RIL, Indias largest private sector led by MukeshAmbani have also toyed with the idea of reserving capacity at the Shell Hazira Gas plant, a joint venture between Shell, Anglo Dutch company and French based Total and Petronet LNG Ltd . s Dahej Terminal. An RIL executive had previously mentioned that they are discussing with various LNG Terminal operators to reserve specific gas capacity at the present LNG Dahej Terminal where they endeavor to leverage the capacity and render more gas to the starving market. They are open to the payment of toll charges. About the Author: RIL -BPis in talks with Andhra Pradesh to supply LNG to five major gas producers over there including GMR, GVK, Konaseema Gas, SravanthiEnergy, and LancoInfratech. IGS has presently quoted a price of $ 9.5 mBtu and can even increase to$10.63 for ex- regasification. However, it is more viable and feasible with the current spot price of LNG accounting to be $17-18 permBtu. Article Published On: ..articlesnatch.. – Business 相关的主题文章: