India an attractive LNG spot market: Top energy experts

SINGAPORE: India is an attractive market for Liquefied Natural Gas (LNG) spot trade though its power generating sector will continue to rely significantly on coal, energy industry executives said here on Monday.

"The LNG market is getting shorter, more liquid and transparent that suits market like India as there are going to be more LNG available on the spot (trade), said Martin Houston, vice chairman of the Texas-based LNG company Tellurian Inc.

"With the increasing number of terminals along the coasts and pipeline connection, I see great amount of LNG being sold to India (in the coming years), he told a press conference at the Singapore International Energy Week which opened on Monday.

But India will also have to maintain some long-term LNG supply contracts for stability, added Keisuke Sadamori, director at the Directorate of Energy Markets and Security in the International Energy Agency.

He noted that India has joined Japan, South Korea and China in calls for global LNG suppliers to offer competitive prices.

Houston noted that India is renegotiating long-term contract for lower LNG prices as price will remain a determinant in lowering energy cost in India.

"There has been willing buyers and willing sellers and gas continued to be supplied to India despite the re- negotiation of termed contracts," he said.

However, coal will continue to play a significant role in India s power generating sector as the government continues with its efforts to reach out with electricity across the country, both executives and delegates at the conference pointed out.

Emphasising on India's ongoing renewable energy programme, the executives saw the significance of coal as it would remain the cheapest fuel for generating electricity.

India is going to be dependent on coal for a long-time, said clean energy consultant Ken Hickson, managing director of Singapore-based ABC Carbon.

Though Indian renewable energy targets are applaudable, some 275 GW by 2027, according to National Electricity Plan 3, Hickson noted that the progress on some of the green projects have been slow.

India has vast renewable energy resources, hydro-power, solar and wind being among the main sources, according to Hickson.

Our country is renegotiating a long-term contract for lower LNG prices as this factor will remain a determinant in lowering energy costs in India

NEW DELHI: State-run power equipment maker BHEL on Monday said it has commenced execution of Rs 20,400-crore Yadadri supercritical thermal power project ordered by the Telangana State Power Generation Corporation.

"The execution of the 4,000 MW Yadadri Supercritical Thermal Power Project ordered on Bharat Heavy Electricals Limited (BHEL) by Telangana State Power Generation Corporation Limited (TSGENCO) has commenced with the issuance of revised Letter of Intent by TSGENCO," BHEL said in a regulatory filing.

BHEL said that the project, valued at approximately Rs 20,400 crore, is the single largest order for the company so far and is also the highest value order ever placed in the power sector in India.

"The project has been accorded environmental clearance" and would be compliant with the revised emission norms, the PSU said.

The project is located at Damaracherla in Nalgonda district of Telangana. BHEL said the Yadadri project will be executed on fast track basis by the company in line with its strategy of focusing on revival of held up projects and their speedy execution. TSGENCO has earlier awarded contracts for 800 MW Kothagudem and 1,080 MW Bhadradri power projects to BHEL, which are under advanced stages of execution.

Shares of BHEL were trading 0.83 per cent up at Rs 85.50 on BSE.