Essar to Restart 500MW Gas Based Power Plant in Indian State of Gujarat

Essar Power is expected to restart its 500 mw natural gas-based power plant at Hazira in the western Indian state of Gujarat in the next quarter, Press Trust of India reported Monday.

The plant was shut down three years ago due to unavailability of gas. The Bhander Power-Hazira plant was commissioned in 2006 and commenced full commercial operations in October 2008, but due to high price of the fuel, the company had kept the operations suspended since the past three years, Press Trust added.

"We had shut operations at two of our gas-based plants with a capacity of 500 mw and 515 mw each at Hazira due to non-availability of the fuel. What was available was so expensive, almost at $12-14 per mmbtu, that we could not even dream of generating power so we had to shut operations," company's Executive Vice-Chairman Sushil Maroo said.

With recent fall in global LNG prices, the company is now in a position to commence operations at least at the Bhander plant in the next quarter, he said.

"The prices have gone down to almost $4.5-5 per mmbtu. Though we expect it to further come down to a comfortable level, at this rate also we can at least start instead of keeping the plant idle," Maroo said. Power will be sold to Essar Steel.

Maroo further said the company has also kept the 515 mw Essar Power-Hazira power plant on ready mode but will operationalise it only if gas prices go down further.