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Govt sets up committee for stable gas price for power units: Oil Secretary

The government has set up a committee to work out measures need to make natural gas available to power plants at “reasonably stable prices”, Oil Secretary Tarun Kapoor said on Thursday. India has 24,900 megawatts of gas-based power generation capacity. But of this, 14,305 MW is stranded due to the non-availability of reasonably priced gas.

“We have set up a committee to look to see how we can make natural gas available to the power sector at a reasonably stable price,” he said at ETEnergyworld Gas Conclave.

Without giving details of the panel or its report, he said power plants want fuel at “fairly stable” price as the electricity they produce is priced at uniform or almost static rates.

“If the price of natural gas goes up, power generators cannot increase the price of electricity they produce,” he said. “So we are looking at ways and means of how we can increase the penetration of natural gas in the power sector.”

The average domestic gas supplied to gas-based power plants is just over 25 million metric standard cubic meters per day (mmscmd), which is 70 per cent short of the allocation or the requirement.

Source
ET Energy World
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