NTPC signs gas purchase agreements with GAIL, IOCL, BPCL for Kayamkulam

National Thermal Power Corporation Ltd (NTPC) has signed gas purchase agreements (GSAs) with GAIL, IOC and BPCL for supply of around 1.2 million tonnes per annum of re-gassified natural gas (RLNG) for a period of 20 years for the Rajiv Gandhi Combined Cycle Power project in Kayamkulam, Kerala.

T K Chatterjee, executive director (fuel management), NTPC signed the GSAs with GAIL executive director J Wasan, BPCL chief executive (gas) A K Bansal and IOCL general manager (gas) V Damodaran, respectively.

The GSAs were signed in the presence of union Minster of power Sushilkumar Shinde, and other state and central government officials.

Stage-I (360 MW) of the project is currently under operation with naphtha as fuel. Stage-II expansion originally envisaged a total nominal capacity of 1950 MW. The tied-up RLNG can support the existing Stage I and one module of Stage II. Efforts are being made for tie-up of the additional quantities required for Stage II, an NTPC press release said.

RLNG will be transported by GAIL through a 110 km dedicated sub-sea pipeline to be laid by GAIL. Petronet LNG Ltd (PLL) is setting up an LNG terminal at Kochi by 2012. NTPC and GAIL will sign a separate gas transportation agreement (GTA) for transportation of the RLNG.

NTPC at present operates nearly 5000 MW capacity through gas-based stations. The company has total installed capacity of 30644 MW through 26 power stations, including joint ventures. NTPC has targeted electricity generation of 50 GW by 2012 and 75 GW by 2017. The company is currently working for an additional capacity of about 18000 MW.