Gas supply issues push NTPC's Rajiv Gandhi CCPP to XII plan

NTPC has beem forced to defer commissioning of the 3x650 MW Stage II of its Rajiv Gandhi combined cycle power project (CCPP) at Kayamkulam in Kerala to the XIIth plan, as the RLNG supplies required for the project, to be eventually sourced from the Australian company, Gorgon, will not commence before July 2014. Pertinently, to procure fuel for this project, NTPC had, in December 2009, entered into an agreement with Petronet LNG, which is expected to source 1.2 MTPA of gas, for 20 years, from Gorgon for the power major. However, as per the gas sale agreement (GSA), RLNG supplies are expected to start somewhere between July 2014 to January 2016. In view of lack of immediate supplies, NTPC has reasoned that it will go ahead with the project in such a way so as to synchronize its completion with the commencement of fuel deliveries.

 Further, NTPC has already signed an agreement with GAIL, Indian Oil Corporation (IOC) and BPCL for bridge supplies, to effect the commissioning of the plant, till the entire contracted quantity is available. Notably, the Notice Inviting Tender (NIT) for the main plant equipment of the project is envisaged to be issued soon, while its award is targeted for year end.