Looking for cheap gas imports: Goyal

Looking for cheap gas imports: Goyal
Highlights

The Government will approach global markets for long term gas supply pacts in view of low prices of the fuel, Power Minister Piyush Goyal said.

The Government is already running a Power System Development Fund scheme to ensure supply to stranded gas-based power projects and plants running at sub-optimal levels due to lower supplies

New Delhi : The Government will approach global markets for long term gas supply pacts in view of low prices of the fuel, Power Minister Piyush Goyal said.

"I will be approaching the world market to see if we can get gas for may be seven or five years on reasonably low cost of fix price. That could be a game changer for the industry", Goyal said at the sidelines of an Assocham event here on Tuesday.

He further said: "We have to go through the proper bidding process but considering the prices are low at this stage and the world is looking at clean energy...(government) will approach world market (directly)."

The Government is already running a Power System Development Fund (PSDF) scheme to ensure supply to stranded gas-based power projects and plants running at sub-optimal levels due to lower supplies. Under the scheme, R-LNG is imported to run these power projects.

The projects are required to bid for lower gas subsidy to get the supplies under the scheme. The minister also informed that the gas pooling mechanism is up till 2017 and the system can continue the supplies even after that.

Regarding the upcoming auction of the Ultra Mega Power Projects (UMPPs) of 4000 MW each, the minister clearly indicated that as many as four projects will be put on the block in the next three months. The projects include Cheyyur UMPP in Tamil Nadu, Bedabahal UMPP in Odisha and Banka UMPP in Bihar. Besides, there will be another UMPP for offer in Jharkhand.

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