Ratnagiri revival hits roadblock as Qatar gas comes with riders

Natural gas supply to Ratnagiri Gas & Power Ltd would be delayed as Qatar’s Ras Laffan Gas Co is willing to provide liquified natural gas

Natural gas supply to Ratnagiri Gas & Power Ltd would be delayed as Qatar’s Ras Laffan Gas Co is willing to provide liquified natural gas (LNG) either at Dahej or Hazira—neither of which are connected through pipeline to plant site Dabhol.

‘‘RasGas would be able to give LNG from December 2006 with a condition that LNG has to be received either at Dahej or at Hazira but not at Dabhol because RasGas wants to sympathise with Oman LNG and ADGAS for resolution of their contractual claims with erstwhile Dabhol Power Co (DPC),’’ says a Petroleum Ministry paper.

So, the plan is that RasGas will supply gas to Petronet LNG Ltd at Dahej from where it would be piped to Dabhol. But this plan would result in supply delay as the proposed Dahej-Uran pipeline project is expected to be commissioned only after March 2007.

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This would alter the current schedule of the revival plan and hamper the expediency being shown for installing the power blocks.

According to the Power Ministry, this mismatch could result in an additional expense of Rs 139 crore. If diesel is used as start up fuel instead of gas, RGPPL would have to arrange for Rs 162 crore as against Rs 23 crore that has been provided for LNG in the Lenders Business Plan.

‘‘In view of the current indications of LNG supply/availability by early 2007, a decision is needed on proceeding further with the pre-commissioning activities,’’ said the Power Ministry.

However, India does not have much option on changing the receipt terminal as the most prospective sources for short-term supply are Qatar, Oman and Abu Dhabi. Both Oman LNG and ADGAS have indicated that discussion on further supplies would be held after pending issues of Sales Purchase Agreement with DPC are resolved.

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