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KPCL to select company for supply of LNG

KPCL to select company for supply of LNG

Karnataka Power Corporation (KPCL) plans to conduct international competitive bidding process to select a company for supply of up to 1 mn mtpa of liquid natural gas (LNG).

KPCL requires LNG in order to fuel its upcoming 700 mw gas-based combined cycle power project at Bidadi near Bangalore. The project is estimated to cost Rs 2,500 crore.

The state-run firm invited expression of interest (EoIs) from nationally and internationally renowned, experienced, well-established, reputed companies for this purpose.

The selected company would supply LNG at Dabhol LNG Terminal or supply it at the plant site from March 2015. The Government of Karnataka accorded approval for the establishment of the first unit of 700 mw gas-based power plant in July, 2011.

KPCL has already acquired 70 hectares land for the proposed project at Bidadi and signed power purchase agreement (PPA) with Karnataka ESCOMs (Electricity Supply Companies) for the power to be generated from the proposed project.

Meanwhile, it may be noted that GAIL is setting up a 800 km pipeline from Dabhol in Maharashtra to Bidadi, about 32 kms from Bangalore to supply gas to the state. The project is nearing completion, reports suggest.

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