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Our Bureau

HPL Cogeneration can easily switchover from naphtha-fired technology, says MD

Kolkata April 3 Haldia Petrochemicals Ltd (HPL) is considering gas-based captive generation to support the future expansion plans. The company currently uses power produced by its 75-MW joint venture — HPL Cogeneration Ltd — with L&T. The latter holds a majority 51 per cent stake in the joint venture.

Being a naphtha-based facility, power produced by HPL Cogeneration is relatively costly.

According to Haldia Petrochemicals' official sources, the company could have saved up to Rs 150 crore annually had HPL Cogeneration switched over to coal-fired technology.

RIL gas supply

"With the emerging prospect of natural gas supplies by Reliance Industries to Haldia, we are exploring the possibility of gas-based captive generation," the HPL Managing Director, Mr Swapan Bhowmik, said.

Though he did not clarify whether any such venture would be taken up by the existing joint venture, he said, "it is relatively easier for HPL Cogeneration to switchover from naphtha-fired to gas-fired technology."

RIL has already proposed laying a gas pipeline to Haldia. The pipeline will connect its rich finds in Krishna-Godavari and Mahanadi basins in the East coast.

A final call on gas-based captive generation, however, will be taken depending upon the progress of the proposed 2,000-MW Greenfield facility of RPG Enterprises in Haldia. "We may also opt for using primarily grid power, depending on the tariff and availability."

Petrochem feedstock

Despite the projected arrival of natural gas in Bengal by 2009-10, HPL seems to be not so keen of using the same as a petrochem feedstock for its proposed facility in Haldia. The company now uses naphtha as feedstock.

"We understand that the gas available in the region may be having very low ethane content — which has proven use as a petrochem feedstock — and will apparently find best use in power and fertiliser sectors," Mr Bhowmick said.

More Stories on : Outlook | Power | Petrochemicals

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