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Natural Gas India's Petroleum Ministry Gives Power Plants Flexibility in Gas Utilisation

Editor: Dominik Stephan

Considering the fact that many power plants in the country are operating at low Plant Load Factor (PLF) due to acute shortage in availability of domestic gas leading to inefficient production of electricity, the Ministry of Petroleum and Natural Gas has notified guidelines for clubbing/diversion of allocated gas between two or more power plants of same entity (the ownership structure of the power plants involved in clubbing/diversion must be identical)so as to improve the PLF and corresponding increase in total generation of electricity.

More flexibility for India's power plants: The country's petroleum ministry introduces new concepts for gas utilisation.
More flexibility for India's power plants: The country's petroleum ministry introduces new concepts for gas utilisation.
(Picture: Wikimedia Commons)

New Delhi/India – The clubbing/diversion, in all spells, should not be for a period of more than a year in total and clubbing/diversion of gas should lead to higher production of electricity compared to pre-clubbing arrangement. The cost of the gas, so diverted, would be in accordance with the price based on the source of the diverted gas so that there is no financial burden on the end consumers.

Flexibility Helps to increase Power Plant Efficiency

The entity seeking clubbing/diversion would bear any additional financial liability arising from the existing and future Gas Sale Agreement(GSA)/Gas Transport agreement(GTA) and any other swapping transaction resulting there from and the end-use of the diverted gas would remain the same i.e. supply of power to State Discom.The power plants would, therefore, have to obtain no objection from the concerned power distribution company (Discom) to which they are supplying electricity (pre-clubbing/diversion) and the Ministry of Power shall operationalize the arrangement. This step should help many power plants operating at low capacity in improving their power generation.

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