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Sacking stress for gas based generation by adoption of price pooling mechanism

November 14, 2018 04:25 PM

Tagged Sector(s) : Power,Oil and Gas

India has about 25,000 MW of Gas based generation which are stressed due to unavailability of natural gas.

To resolve the gas unavailability issues government is working out a gas allocation mechanism for the generation units by price pooling of ONGC deep sea gas with LNG and subsidising the tariffs under which there will be two options of gas allocations, one by auctioning of gas and other by rotation to power projects. 

Adoption of such measure is envisaged to reduce present RLNG price to $9 per mmBtu computing to around Rs. 5.9 per unit cost of generation and government also pursues to provide a subsidy of around Rs. 15,000 Crs which may further drop down the power prices by Rs. 1.5-2 per unit. This will help stressed gas-based assets to operate and meet peak demand .

Article By:
Amit Sharma

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