Dabhol project may operate twice a day due to lack of gas supply

Project is closed since February 21 in the absence on gas linkage schedule

The Ratnagiri Gas & Power Pvt Ltd (RGPPL), which operates 1,967 MW Dabhol project, is forced to shut down generation since February 21 due to lack of availability of gas from RIL’s KG D6 and ONGC. The company was expecting gas linkage schedule from RIL and ONGC on February 28 to restore generation but did not receive it.

It is now considering operating the plant twice a day depending on the gas availability. The generation will depend on the actual gas supply.

To operate plant at its full capacity, RGPPL has been allocated 8.5 million metric standard cubic meter per day (MMSCMD) of gas comprising 7.6 MMSCMD from RIL and .09 MMSCMD from ONGC through GAIL India at $4.20 million British thermal unit (mmBtu).
However, the company has been receiving much less quantity during 2011-12 and during current fiscal. The closure of plant coincided with the finance minister P Chidambaram's announcement that LNG terminal at the project will be fully operational during 2013-14.

RGPPL official told Business Standard “Till date there has been a generation loss of 8,387 million units while the loss in rupee terms will be about Rs 3,000 crore during 2012-13 as on date. The project received an average 2.67 MMSCMD of gas. In last fiscal 3,095 MUs of generation was lost as the company received an average 6.3 MMSCMD of gas. The loss will be of the order of Rs 1,150 crore.

Despite gas allocation to Dabhol project is considered on a priority list after fertilizer sector, the company is unable to get it.”
The project was shut down on January 26 which was revived on January 28 to generate 250 MW after the receipt of 2.3 MMSCMD gas. Again the RGPPL stopped generation from February 7 and 13 to restart on February 14 and 15. The project was closed from February 16 to 18 and the generation was restored for February 19 and 20. Since February 21 till date there has been no generation and it would continue till gas supply is restored.

The official ruled out procurement of LNG from the terminal at the project site as the price will be $15 per mmBtu against $4.20 mmBtu at which the gas allocation is made to the project. The official indicated that procurement of LNG at $15 per mmBtu would lead to rise in per unit tariff to Rs 8 from the present level tariff ranging between Rs 4.80 and Rs 5.80 depending on the generation.