GAIL pact to power PPCL plant in Bawana

NEW DELHI: GAIL India has formalised a gas sales agreement (GSA) with Pragati Power Corporation (PPCL) to supply 2 million metric standard cubic metre per day (MMSCMD) of re-gassified liquefied natural gas (R-LNG) for the corporation’s 1,500-MW combined cycle gas turbine power project coming up at Bawana.

The fuel supply will commence from October 2009 and the validity of this agreement will be till 2024. The power plant is expected to be fully commissioned by October 2010 to supply power to Delhi.

“Gas will be sourced from Petronet LNG, and GAIL will be transporting it to PPCL, for which an MoU has already been signed with BPCL and IOC. Furthermore, to bring gas from Dadri to Bawana, a pipeline with two compressors will be laid.

A loop line will also be put in place in the GREP pipeline system of GAIL, which will involve Rs 5,000 crore investment and will supply gas to other customers, too. “GAIL is confident of wrapping up this pipeline project, synchronising with the power plant,” GAIL chairman and managing director UD Choubey said in a statement.

The re-gassified LNG shall be supplied to PPCL Bawana and the price of delivered gas will be in line with pooled price policy directive issued by the ministry of petroleum and natural gas, he said.

The peak demand for electricity in Delhi is slated to grow from the current 4,100 MW to 5,630 MW in 2010 as per an estimation of the Central Electricity Authority (CEA). The Bawana plant currently generates 1,300 MW.