GAIL (India) and AP Government’s LNG floating and processing unit near Kakinada on the east coast will be operational by December next year. This will significantly ease pressure on gas supply in the region and on power projects.
S.Venkataraman, Director, Business Development, GAIL (India), said the floating, storage and re-gasification LPG terminal, when commissioned, will help gas-starved power plants.
The project, a venture of Andhra Pradesh Gas Distribution Corporation, French company GDF Suez and Gail Gas (part of GAIL), will handle 3.5 million tonnes of gas per annum.
This is equivalent to 14 mmscmd. Typically, 1 mmscmd of gas is sufficient to power a gas plant of 220 MW. If the entire gas is used up by power plants, it will be adequate to support about 3,000-3,100 MW
But the issue is whether independent power producers and others who need gas will be able to buy gas at the market-driven prices. The cost will include imported gas price, transportation cost, liquefication and evacuation to site, he explained.
Earlier, speaking at the CII event on natural gas, Venkataraman said natural gas is emerging as the preferred fuel of choice to run power plants across the globe. But in India, barely about 10 per cent of the energy fuel demand is met by gas and this mix is expected to significantly go up in the next few years.
Referring to GAIL initiatives, he said that efforts are on to strike deals and enter into long-term supply contracts with local partners across the globe. GAIL has set up a subsidiary in Singapore apart from entering gas-rich countries by setting up offices and a joint venture for shale gas.
“We also see Mozambique and Tanzania having huge potential to supply gas,” he said.