Assam: AERC directs AGCL to provide gas to Lakwa plant to meet shortfall

Staff Reporter

Guwahati: In a good news for the power scenario in the state, the Assam Electricity Regulatory Commission (AERC) on Wednesday issued an order in connection with the agreement signed by Assam Power Generation Corporation Ltd. (APGCL) to procure gas from Assam Gas Company Limited (AGCL) on a fallback basis to meet the shortfall of natural gas in its Lakwa Thermal Power Plant (LTPS).

In its order today, AERC stated that APGCL had filed a petition on the signing of a gas supply agreement, along with transportation, with Assam Gas Company Limited (AGCL). APGCL said it is willing to procure gas from AGCL on a fallback basis to meet the shortfall of natural gas in its Lakwa Thermal Power Plant (LTPS).

A hearing in this regard was held on September 19, 2024, in the presence of both the petitioner and respondents. During the course of the hearing, APGCL was directed to submit certain clarifications regarding their gas supply agreement with AGCL. The AERC also sought a detailed cost-benefit analysis of LTPS, including the transportation cost after procuring gas from AGCL on a fallback basis. APGCL submitted the clarification sought by the Commission on October 4, 2024. APGCL submitted an analysis considering two scenarios with and without procuring gas from AGCL on a fallback basis.

The AERC, after considering the above facts and the overall power position of the state, accorded in principle approval for the purchase of AGCL gas at USD 6.31/MMBTU, subject to some conditions. That is, APGCL is allowed to utilize AGCL gas for power generation during peak hour generation. APGCL is also permitted to utilize AGCL gas during off-peak-hour generation if APDCL schedules the same in writing. APGCL has also been directed to submit the information of supply of the additional quantum of gas and generation thereof to the Commission and APDCL on a weekly basis. The order further stated that APGCL shall streamline the generation to suit the requirement of APDCL. Moreover, APGCL shall have to submit all the information about the fuel cost at the time of truing up.

Lakwa Thermal Power Station (LTPS) is a gas-based power plant situated in the district of Charaideo in the state of Assam with a total installed capacity of 97.2 MW.

 Also Read: Assam: Guwahati city to get piped gas supply by end of 2024

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