Page 7 - AsiaElec Week 19 2021

AsiaElec GAS-FIRED GENERATION AsiaElec

Indian TPPs seek easier access to

ONGC’s gas

INDIA AN industry body representing India’s power deposit that is equivalent to two weeks’ worth
generators is lobbying the government to make of gas supply – INR230mn ($3.1mn) in the case
it easier for certain natural gas-fired thermal of buyers needing 1.5mn cubic metres per day
power plants (TPPs) to bid for supplies of the of gas – was beyond the ability of most stranded
fuel from a new deepwater field. assets.
The Association of Power Producers (APP) Around 24,900 MW of gas-fired generation
reportedly urged the government this week to only managed to run at 23.4% capacity in finan-
relax biddings rules governing gas-constrained cial year 2020-2021 owing to a lack of feedstock.
TPPs looking to offtake from state-run Oil and Around 12,000 MW of that has been classified
Natural Gas Corp.’s (ONGC) KG-DWN-98/2 as stressed assets, with 5,600 GW receiving no
(KG-D5) gas field, which lies in the Krishna-Go- gas at all.
davari (KG) Basin. “Under such circumstances, the turnover
The industry body has asked that “stranded” and net worth of parent/ultimate parent/hold-
TPPs be allowed to pay less than the required ing company, as well as affiliates and associate
INR20mn ($271,000) security deposit, bid for companies, should be allowed for meeting the
one-year contracts rather than ONGC’s set criteria,” the paper quoted the APP’s letter to
three-to-five-year terms as well as relax the auc- the Ministry of Petroleum and Natural Gas as
tion’s net-worth criteria, local daily Financial saying.
Express reported on May 3. ONGC’s KG-D5 field started up in March
The APP argues that the bidding rules need to 2020, with production projected to peak at 15
be relaxed in order to give stranded TPPs a more mcm per day by financial year 2023-24. Finan-
realistic chance of securing new gas supplies, the cial services provider HDFC Securities forecast
lack of which compromised their financial per- last month that the state-run producer’s overall
formance in the first place. production would climb from 62 mcm per day
The body noted that putting up a security in 2020-2021 to 75 mcm per day in 2023-2024.™

Sojitz buys Abu Dhabi power compnay

JAPAN SHUAA Capital sold its 20% equity stake in Dhabi with a net power capacity of 1,600 MW
Abu Dhabi’s Mirfa International Power and and a net water capacity of 52.5mn gallons per
Water Company (MIPCO) to a Japanese group, day.
Sojitz Corporation (Sojitz), for an undisclosed Sojitz is a multinational trading and invest-
sum. MIPCO’s shareholders also include the ment group, listed on the Tokyo Stock Exchange,
Abu Dhabi National Energy Group (TAQA) with assets of around $21bn across a number of
and Engie SA, the French low-carbon energy sectors. In particular, it has over 40 power pro-
and services group, both of which will remain jects in more than 14 countries globally, making
shareholders holding 60% and 20% stakes it an ideal partner for MIPCO going forward.
respectively. Standard Chartered Bank is acting as financial
Established in 2014, MIPCO has developed adviser on the transaction for SHUAA, with Lin-
and operates a power generation and seawater klaters appointed as SHUAA’s legal adviser. ™
desalination plant in the Al Dhafra region of Abu

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