The Hindu Business Line : ONGC likely to offer gas to Torrent Power's Surat plant

Confirming that they had received an assurance from ONGC for supply of 1.5 mmscmd gas, Torrent Group sources said that TPGL would need a total of 4.5 mmscmd of gas for running the 1,100-MW power plant.

Kolkata/Ahmedabad , Jan. 26

THE UPCOMING 1,100-MW gas-based Torrent Power Generation Ltd (TPGL) at Surat in Gujarat is close to firming up supply of 1.5 million metric standard cubic metre per day (mmscmd) natural gas from Oil and Natural Gas Corporation Ltd (ONGC).

The gas will be supplied from the Panna-Mukta-Tapti (PMT) joint venture to the Hazira terminal.

While pricing is yet to be finalised, ONGC sources indicated that going by the recent trend, prices should be pegged at anywhere between $4.5 and $4.9 per million metric British thermal unit (mmbtu). ONGC and TPGL are expected to discuss the price issue shortly.

TPGL is promoted by the Gujarat-based Torrent Group, having an interest in the power sector through Torrent Power AEC Ltd and Torrent Power SEC Ltd. TPGL, which will come on stream in three phases in 2007, will replace Torrent Group's existing procurements from the Gujarat Electricity Board.

According to sources, apart from ONGC the company is currently discussing possibilities of a supply arrangement with Shell. The company had previously invited bids for fuel supply and received responses from six interested parties.

ONGC sources said that the proposed gas supply would be made from the projected capacity expansion of PMT in 2007.

Currently producing 10.8 mmscmd of natural gas, the PMT JV between ONGC (40 per cent), British Gas (30 per cent) and Reliance (30 per cent) will add another 6 mmscmd production capacity, following development of two more platforms in 2007. ONGC is the joint venture operator.

The company has already entered into an agreement with Dholpur Power in Rajasthan for supply of 1.5 mmscmd natural gas (at $4.6 per mmbtu) in 2007 from its projected additional equity-gas share of 2.4 mmscmd, leaving a residual stake of 0.9 mmscmd for sale.

For a supply arrangement of 1.5 mmscmd to Torrent, the company is negotiating with Reliance and BG for supply of 0.3 mmscmd each to add up with its residual 0.9 mmscmd equity gas.