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Petronet to set up gas power plant in India

30th July 2012

India’s largest importer of natural gas is in talks to set up a gas-fired power plant, aligned with plans to set up multiple LNG import terminals across the country

Petronet to set up gas power plant in India
Kochi is the second addition to the firm’s 10 MMTPA LNG terminal at Dahej, Gujarat. A third terminal, comprised of facilities for storage and regasification of LNG is also planned at Gangavaram Port

India’s top natural gas importer, Petronet LNG Ltd is set to establish a Rs 3,500-crore power plant near its upcoming LNG import terminal Kochi in Kerala, it emerged on Sunday.

The company has proposed to establish a 1,200 MW gas-fired power plant, as part of a joint venture with the Kerala government, local media reported.

Kerala’s contribution to the project will consist of land provided to set up the power plant. The Indian state has struggled with power shortages and has increasingly become open to partnerships with energy companies.

Three 350 MW units will run until 2016 and at least 75 per cent of the power generated during this time is expected to be sold to the state government under a long-term power purchase agreement (PPA).

A memorandum of understanding is expected be signed between the two parties shortly, according to reports.

Petronet’s 5 million metric tonnes per annum (MMTPA) Kochi terminal is scheduled for completion by the end of this year, on par with the building of a pipeline network which will take the gas to consumers.

Kochi is the second addition to the firm’s 10 MMTPA LNG terminal at Dahej, Gujarat. A third terminal, comprised of facilities for storage and regasification of LNG  is also planned at Gangavaram Port and will cater to the growing energy needs of the state of Andhra Paresh. It is expected to become operational by 2016.

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