The Hindu Business Line : LNG to Kayamkulam plant — NTPC bids to ink pact with KSIDC

NATIONAL Thermal Power Corporation (NTPC) has proposed to sign an MoU with the Kerala State Industrial Development Corporation (KSIDC) to make the latter the nodal State Government agency to handle issues relating to infrastructure development for LNG supply to the Kayamkulam thermal plant.

NTPC sources told Business Line on Friday that for adequate assistance from the State Government with regard to providing land, water and infrastructural facilities for the development of LNG re-gasification terminal/fuel handling facility and `right of way' for laying the pipelines, such an MoU was necessary.

Even if the corporation decides not to set up an LNG terminal of its own, such facilities will still have to be developed, sources claimed.

The corporation has already invited bids for the procurement of LNG/natural gas to meet the requirement of existing as well as expansion capacity of Kayamkulam project. As part of the two-stage bidding process, the corporation had received bids against request for qualification and they were under evaluation, they said.

The bidders included Petronet and GAIL. Priced proposals from the qualified bidders would be invited subsequently, the sources said.

They said that it was clarified to the Chief Minister during the meeting convened by him on November 19 that Petronet was one of the bidders and sourcing of LNG/NG would be through the bidding route to ensure the most competitive cost of fuel for power generation.

The expansion of the power plant by 1,950 MW would become a reality as and when the supply of the LNG/NG takes place. Development of an LNG terminal is estimated to take 36 to 42 months from the award of EPC work by the developer, they said. Hence, the power project cannot be "expanded by 1950 MW using LNG by August next year" as reported in some of the media, the sources added.

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