Industry & Economy
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Petroleum
4 petroleum majors submit EOIs for gas supply to MSEB
Archana Chaudhary
Mumbai
,
July 7
OIL majors Gail (India), Shell, Indian Oil and Bharat Petroleum have submitted expressions of interest (EOI) for the LNG supply tender issued by the Maharashtra State Electricity Board.
The EOIs will be scrutinised and final bids, for two contracts to supply 4 million cubic metres per day LNG to its Uran plant, will be called before October 2004, a senior MSEB official told Business Line. MSEB has appointed Crisil as advisor for the LNG procurement.
MSEB had issued a tender for expressions of interest before July 5 for supply of regassified or liquid natural gas in two packages of 14.6 trillion British thermal units (1 million standard cubic metres per day) per year and 43.8 Tbtu (3mscmpd).
MSEB plans to add another 440 MW capacity to its 825-MW Uran plant that has been operating at one-third its capacity because of gas shortages.
MSEB needs roughly 3.4 million cubic metres gas for its Uran plant every day. Officials say although ONGC supplies have improved to 2.5-2.6 million cubic metres, there still is a shortfall of 0.8 cubic metres. The total demand includes 1 million cubic metres for meeting the shortfall and another 3 million cubic metres after the planned capacity addition.
However, big gas players Petronet LNG and Reliance Industries have stayed away from the tender, which is smaller compared to NTPC's tender for supplying 7 million tonnes of LNG annually for 17 years.
Among the players that have submitted EOIs, Shell India is building a 5 million-tonne LNG import terminal at Hazira, while Gail (India), IOC and BPCL are shareholders in Petronet LNG Ltd's 5 million tonne Dahej terminal. Although Gail (India) has ambitions of becoming the country's natural gas carrier, oil marketing companies IOC and BPCL have plans to enter the natural gas business.
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