More good news on the Dabhol project. The power plant, in disuse since May 2001, is in better condition than expected and could be up and running full steam by next October, says a government paper.A team led by Power Secretary R.V. Shahi found ‘‘ground realities of the project to be much better than earlier expectations’’ with Block 2 in best condition and most suitable for cranking up the plant.‘‘The likely date of operation for the first unit (of 740 MW) could be as early as May instead of July 2006 as planned earlier. Other two units will follow on September 1 and October 1,’’ Shahi was quoted as informing the Dabhol revival committee.Two blocks have been synergized while the third is under erection and commissioning. Initial operations would be done with naphtha of which 34,000 kilolitres were found stocked at the project site, Shahi told the committee headed by Cabinet Secretary B.K. Chaturvedi.LNG receipt and re-gasification facilities were also found to be in advance stages of completion when Ratnagiri Gas and Power Private Ltd took over the Dabhol assets.The jetty and the re-gasification unit were 95 per cent and 80 per cent complete while LNG storage tanks 1, 2 and 3 were 95 per cent, 90 per cent and 80 per cent ready.‘‘Approach channel is 75 per cent complete while breakwaters, although not critical for the power plant operations, is 50 per cent complete,’’ says the minutes of the meeting held on October 27.The only hassle in operating the project on a sustained basis is LNG for which GAIL (India) Ltd is yet to find a supplier. The committee has directed GAIL to send a team to Qatar and Oman for securing LNG supplies by this month.According to GAIL, Qatar was better placed for sourcing LNG than Oman with RasGas indicating availability of five spot cargoes or 0.3 million tonnes in 2006 at $7.5 per mBtu. It has indicated the availability of 2-4 million tonnes per annum between 2007-08.Oman LNG is talking of 0.6-0.8 million from February 2006 with 1.0-1.2 million in 2007 and up to 1.8 million from 2008.About 2.1 million tonnes of LNG is required per annum from July 2006 for cost-effective operation of entire 2,184 MW project with additional 2.9 MTPA from September 2007 for economic operation of the LNG terminal.Though the attempt is to keep the LNG price at $4.25 per mBtu for power tariff at Rs 2.50 per unit, the final price is likely to be higher as LNG producers are quoting about $7-8 per mBtu.
