Kumari Palany & Co

For supplying power to Chennai Area, 2 new regasified LNG based power plants to be set up

Posted on: 25/Jun/2020 10:11:21 AM
For the sake of supplying power exclusively to the Greater Chennai Area, the government of TN has ordered preparation of DPR or Detailed Project Report to set up 2 re-gasified liquefied natural gas based power plants. The combined capacity of these 2 power plants would be 1460 MW. At a site vacated by GMR in Basin Bridge, the 2 plants would be set up at a cost of Rs 5000 crore.

It must be taken into account that imported gas for the plant would be provided by Indian Oil through a pipeline from Ennore refinery. It is known that at present Tangedco has 516 MW gas based plants at Cauvery delta basin and in the dry belt belonging to Ramanathapuram.

As per a senior officer belonging to Tangedco, it was clear that for the preparation of DPR a consultant has been appointed. He added that once Coronavirus subsides the work would go fast. He hinted that in another 3 years these 2 new units would start functioning.

Important information is there is a difference between the power plants that have been in use now and those that would be set up in Basin Bridge. Imported LNG would be used by the power plants at Basin Bridge whereas the ones at Cauvery delta basin and at Ramanathapuram gas from the same basin have been used.

It is worth mentioning that there is enough land in the area and 4 units of GMR each with capacity of 46MW occupying 30 acres. Diesel was used as fuel in the initial stages by the GMR units and plants used low sulphur heavy stocks as fuel. The units were de-commissioned in the year 2018 due to factors like high cost of the fuel and pollution.

Point is for Tangedco the average cost of power production of gas based units available now is around Rs 3 per unit.