Power from LNG terminal to cost Rs 8 per unit, generation cost to come down

The setting up of first LNG terminal on the East Coast at Kakinada Seaports Ltd will help bring down power generation cost by about Rs 4 per unit and LNG by $4 mmBtu (million British thermal unit).

Currently, LNG supplied to power stations through a gas swap arrangement and having to bear State taxes works out to about $12 per mmBtu, against $4.2 per mmBtu supplied to gas plants from the Krishna-Godavari Basin.

The power produced from LNG will be nearly twice the cost of the power generated using natural gas from the KG Basin fields but cheaper compared to power generated now through LNG, naphtha and so on, which ranges between Rs 12 and Rs 12.50 per unit.


The floating storage re-gassification LNG terminal coming up in tie-up with GDF Suez LNG UK Ltd will be first such on the east coast, while there are three terminals on the west coast.

B.C. Tripathi, Chairman and Managing Director of GAIL Ltd, during his visit to Hyderabad said necessary support infrastructure has to be developed by 2017 when they will have access to supply about 8 million tonnes a year contracted for supply at Henry Hub prices.

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