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Centre renews LNG offer for city power plant

As Delhi battles the tag of being one of the most polluted cities in the world, the Centre on Thursday renewed its offer to supply natural gas to the city’s stranded power plant to help switch from th

As Delhi battles the tag of being one of the most polluted cities in the world, the Centre on Thursday renewed its offer to supply natural gas to the city’s stranded power plant to help switch from the polluting coal-generated electricity. Oil minister Dharmendra Pradhan said his ministry had offered to supply natural gas to the Bawana power plant at a price of $7.5-8 per million British thermal unit, that will help generate power at less than Rs 5-6 per unit Delhi pays for getting electricity from the coal-based Badarpur power station. “I had written to the Delhi chief minister offering him to supply LNG. He wrote back to me, but did not address the core issue (of taking gas),” he said.

“If they shut (coal-based) Badarpur power station, it will help cut pollution equivalent to not plying cars for 17 years,” the minister added. Delhi, he said, has a power demand of 6,500 to 7,000 MW. Deca-des-old Badarpur power plant supplies 350 MW.

The 1,500 MW Bawana power plant in Delhi has been operating at less than a fifth of its capacity for the past four years. The plant was to be commissioned before the 2010 Commonwealth Games, but was delayed by an year.

“Even buying LNG from spot market would be more cost effective for Delhi,” he said.

The slump in international energy prices has meant that liquefied natural gas in international market is available at $5-6 per mmBtu. The price after including shipping cost, taxes and pipeline transportation comes to $7.5-8 per mmBtu.

“LNG is available in abundance in the international market,” he said.

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