Ennore project promoters sign agreement with PTC

By Our Staff Reporter

CHENNAI, SEPT. 15. CMS Energy Corporation of the U.S. and its co- lead developer, the Aditya Birla Group, have entered into a joint development agreement with Power Trading Corporation of India on the $1.6 billion Ennore Liquefied Natural Gas (LNG) and Power project in Tamil Nadu.

The agreement includes a timetable with firm dates for the achievement of key project milestones, as well as the Union Government's commitment to set an effective payment security mechanism for the firm purchase of power from the 1,850 megawatt Ennore plant. The announcement was made on behalf of Dakshin Bharat Energy Consortium (DBEC), which is developing the project. The agreement was signed in Washington D.C during the official visit of the Indian Prime Minister.

According to a press release, the consortium was granted exclusive rights in December 1998 to develop, construct, own and operate the project, after an international competitive bidding process.

The Ennore project will consist of an LNG import, storage and regasification facility that initially will bring in 2.5 million tonnes of LNG annually from the Ras Laffan Liquefied Natural Gas Company (RasGas) of Qatar. The LNG terminal will provide natural gas to the nearby 1,850 MW power plant and feed a natural gas pipeline system designed to serve the growing industrial centres throughout southern India.

As per the agreement, the Centre has expressed its intent to support the payment obligations of Power Trading Corporation of India, which will purchase the entire power generated by the Ennore plant. The Power Trading Corporation is 100 per cent owned by the Centre and was formed in 1998 to establish and operate a responsive and efficient power trading system throughout the country.

Dakshin Bharat Energy Consortium was formed in 1997 to bid for, develop, construct, own and operate the Ennore LNG terminal and Power project and consists of: CMS Energy of the U.S. (26.67 per cent), Aditya Birla Group of India (26.67), Unocal Corporation of the U.S. (18.66), Woodside Petroleum of Australia (15) and Siemens Project Venture of Germany (13 per cent).

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Section  : Business
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