GMR seeks interim gas supply to commission 2x384 MW CCPP at Vemagiri

GMR Rajahmundry Energy Limited (GREL), a subsidiary of GMR Energy Limited (GEL), has requested the Ministry of Petroleum and Natural Gas (MoP&NG) to make interim gas allocation to facilitate the timely commissioning of the 2x384 MW gas-based combined cycle power plant (CCPP) at Vemagiri in the East Godavari district of Andhra Pradesh. In a recent missive to the petroleum ministry, the GMR Group company has asserted that it would require gas supplies from April 2011 onwards till the achievement of the targeted commercial operation declaration (COD) at the two units of the plant in December 2011 and March 2012, respectively. The company has even proposed to use the gas supply network of its sister firm-- GMR Vemagiri Power Generation Limited (GVPGL) -- to wheel the interim gas supply to its plant. Further, GREL attempted to assuage the MoP&NG, that the sought gas allocation will only be a short-term arrangement, by claiming that the company has already initiated efforts to obtain fuel supplies to meet the feedstock requirements of the plant in the post-commissioning stage. However, the MoP&NG is likely to consider this petition of the company only after obtaining the recommendation of the union power ministry in this regard.

To undertake various commissioning activities at the two units of the gas-based CCPP, GREL will require only 0.50 MSCM of gas in April and May 2011. The requirement will subsequently increase to 15.40 MSCM for each of the units during the month of attaining the COD. In total, the plant will require gas supply of 183.06 MSCM, including 91.53 MSCM for each of the units, over April 2011 to March 2012.