If the plans of the Kerala State Electricity Board (KSEB) go well, it will be able to produce cheap power from the plants fuelled by natural gas. The KSEB has already submitted an application for the allotment of domestically produced natural gas for its plant at Brahmapuram.
The National Thermal Power Corporation (NTPC) had earlier given a request to use natural gas in its power plant at Kayamkulam.
Experts point out that the power produced from the natural gas allotted domestically will cost only half the price than the electricity generated from imported natural gas.
It is learnt that the state power utility has asked for natural gas supply in Kerala’s account so that it can be distributed among various power projects envisaged in the state.
The proposed power plants in the state using gas as fuel are Puthuvype (1,200 MW), Brahmapuram (1,050 MW), Kayamkulam power plant expansion (1,050 MW), Cheemeni (1,200 MW), conversion of Kayamkulam plant stage 1 (350 MW) and conversion of BSES plant in Kochi (165 MW).
The requirement of the state will be five million standard cubic metres per day (MMSCMD).
M Sivasankar, Chairman, Kerala State Electricity Board, said that the cost of the liquefied natural gas (LNG) is $18-19 per million metric tonnes per annum (MMBTU) which translates into the production cost of `9 per unit of power. If domestic gas which costs $4.2 mmbtu currently and would be $8.4 mmbtu next financial year is available, the production cost will be `5 per unit. Though it will take at least two years to get the allocation, it is expected that the proposed power plants will be ready by then. Thus placing the state in a win-win situation,” Sivasankaran added.
Out of the total production of around 87 million standard cubic metres per day of natural gas, after internal consumption, extraction of LPG and unavoidable flaring, around 74 MMSCMD is available for sale to various consumers.
Most of the production of gas comes from the Western offshore area. The on-shore fields in Assam, Andhra Pradesh and Gujarat are the other major producers of gas.
Around 32 per cent is supplied to the fertiliser sector, 41 per cent to power, four per cent to sponge iron and the balance 23 per cent goes to other sectors.
The Kerala State Electricity Board had recently floated tenders for carrying out the environment impact assessment study for the proposed 350-475 MW gas-based plant at Brahmapuram.