NTPC exploring tie ups with oil PSUs for NELP

With increased availability of domestic gas NTPC Ltd wants to step up building new power stations with gas as feedstock.

As a step in this direction, the power major is looking to tie up with public sector oil companies, including Indian Oil Corporation to jointly bid for the oil and gas blocks put on offer under the eighth round of the New Exploration Licensing Policy.

The company has already written to IOC to explore the possibility of striking a partnership and is also looking at tie-ups with other companies, company sources said. The country’s largest power producer had bagged its maiden oil exploration block in 2005 under NELP-V.

A NTPC official said that “We had earlier decided to go slow on gas based capacity addition due to fuel uncertainty. But with prospects looking up after the recent finds, we are planning to build more gas based stations. We will be participating in the eighth round of oil and gas block auctions.”

Under the NELP regime, significant natural gas production in the Krishna-Godavari Basin began from April. With this, the gas production in India would double from 2008-09 levels.

(Sourced from http://www.steelguru.com/news/index/2009/09/23/MTEzMDU2/NTPC_exploring_tie_ups_with_oil_PSUs_for_NELP.html)