NTPC said to triple gas use amid power supply shortages

New Delhi: NTPC Ltd., India’s biggest electricity producer, has boosted natural gas-fired generation as a drop in hydropower, nuclear and wind energy increases demand for thermal power, according to company officials with knowledge of the situation.

Plant utilization at NTPC’s gas-fired stations has almost tripled to 60% in the past three to four days, said the officials, who asked not to be identified, citing company policy. That compares with an average plant utilization of about 24% for NTPC’s gas-fired stations in the three months ended June, when summer demand peaks.

To meet the sudden increase in demand, NTPC is buying about 10 million cubic meters re-gasified liquefied natural gas daily from the state-run gas distributor, GAIL India Ltd., on a spot basis, the people said. GAIL imports the fuel as liquefied natural gas.

A recent drop in output from hydro, wind and nuclear power plants has opened up an opportunity for gas-fired plants, which on average run at about a fifth of their capacity because they are rarely able to compete with cheaper fuels. GAIL chairman B.C. Tripathi said earlier this week that the company is witnessing a surge in demand for gas from power producers including NTPC and Indraprastha Power Generation Co., which supplies power in the nation’s capital New Delhi.

NTPC chairman Gurdeep Singh didn’t respond to a call seeking comment on his mobile phone. His office said he won’t be available to comment on Friday.

NTPC Limited