NTPC goes all out to bag Nigerian gas blocks

Company offers to build 500-Mw thermal power plant

At a projected investment of around Rs 1,600 crore, the plant is among other overseas forays that the power major is planning.

NTPC is also working on setting up a 2,000 Mw coal-based power generation plant in Indonesia, involving an investment of Rs 9,000 crore by a local consortium.

What makes the Nigerian plan interesting is NTPC's interest in gas for its plants back home. This approach makes sense, given that the great game being played by India and China to secure energy assets global, has seen the latter take the lead.

From arms to loans, China has tried everything to bag oil and gas blocks. NTPC's attempt needs to be seen in this light, especially as it also plans to help with the rural electrification programme of the country.

"The plant may be set up as a joint venture agreement with the Nigerian government or on an independent basis by NTPC. We would prefer the plant to be a gas-based station as the construction time required for the project is less," company sources told Business Standard.

NTPC's proposal to the Nigerian government spells out assured supplies of gas to its plants. The company is presently scouting for a location for setting up the plant.

With regard to its Indonesian venture, NTPC has received a proposal from Arahan Consortium to set up a plant in Sumatra. "NTPC may take a small stake and provide owner's engineer and consultancy services for the coal mine mouth project," sources added.

An NTPC team, along with officials of the power ministry and the Power Grid Corporation of India Ltd had gone to Nigeria with an investment proposal last week. The power generation major is also scouting for oil and gas exploration blocks in Egypt and Australia.