Regional LNG: India?s NTPC dilutes LNG tender norms

India's largest power firm National Thermal Power Corp (NTPC) has diluted some of the stringent terms of its mega tender for sourcing 3 million tons of gas per year to expand its power plants at Kawas and Gandhar, bids for which open on May 14, according to a report from Sify.com on Monday.

NTPC has waived off the four million dollar bid security and has agreed to take-or-pay conditions for the entire quantity, sources associated with the bidding process said.

The State-run firm has also diluted the condition of parent company guarantee for the bidding firm and has agreed to sign confidentiality agreements with the suppliers.

RasGas of Qatar and British Gas had withdrawn from the NTPC tender last year citing tough conditions.

Royal Dutch/Shell, Yemen LNG and Petronas of Malaysia are the shortlisted bidders for the supply of three million tonnes of liquefied natural gas (LNG) while Reliance Industries Ltd has offered to pipe 4 billion cubic metres of gas from its D6 field in offshore Andhra Pradesh to NTPC's 1300 MW power plants in Gujarat.

If NTPC selects LNG supplies over domestic gas, then the imported fuel would be regasified at either Shell's Hazira terminal in Gujarat or Petronet LNG Ltd's Dahej terminal.

"The bidders are expected to put in their price bids by May 12 and NTPC will open the tender on May 14", they said.

Shell and Yemen LNG are likely to put in a combined bid as French oil giant Total (the principal promoter of Yemen LNG) has already picked up 26 per cent stake in Shell's 2.5 million tons Hazira terminal. (*)