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 volume 12, issue #16 - Tuesday, September 11, 2007

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Dabhol Power plant idle on disagreement over LNG pricing

20-08-07 India's Ratnagiri Gas & Power Private Ltd. has idled the 740-MW Block-II plant under its Dabhol power project over a disagreement on the pricing of liquefied natural gas, Union Power Minister Sushilkumar Shinde told Parliament.
The plant, which switched back to LNG as a feedstock from more expensive naphtha earlier this month, is being maintained under reserve shut down.

Maharashtra State Electricity Distribution Co., the utility which distributes power from the Dabhol project, hasn't confirmed buying power at a higher cost compared with pool prices, which are significantly lower than the prices at which the LNG was imported from the spot market.
LNG supply to power the Block-II plant started in late July, after the pipeline from Dahej to Dabhol was completed earlier that month.

Source: Dow Jones & Company



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