India Power Plant Switching from Gas to Coal (Penn Energy)
Essar Energy to convert 2 gas-fired plants into coal-based units: Media Reports
Essar Energy is planning to convert its two Gujarat-based gas-fired plants at Bhander and Hazira into coal-based units owing to acute shortage of natural gas and high cost of imported gas, said the media reports.
“These plants were commissioned on APM gas, but as there is no availability of either APM gas or allocation from KG-D6, we have been using costly LNG at an average rate of USD 12-18 for the past 2-3 years, which is becoming uneconomical. So, we will be switching to coal. The full conversion will take three years,” Essar Energy, CEO, Naresh Nayyar told media.
In line with its plans to shift to coal-based units, the company will source approximately 1.5-1.7 mtpa coal from Indonesia, the report stated.
As production of 1 kwh of power with LNG costs around 9 cents and 1 kwh power production with coal accounts for nearly 4 cents, the use of coal instead of LNG will help the company reduce costs by around 50 per cent, the report added.
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