Liquefied natural gas suppliers in Australia, Malaysia, Qatar, Oman and UAE are quoting a price of about $ 7 per million British thermal unit (mBtu) for the gas required to fire the plant, industry sources said.

Previously, the state-run GAIL India [Get Quote], which has been tasked with sourcing of fuel to fire the plant, had projected power from the plant to cost Rs 2.3 to 2.5 per kwh (unit) at ex-ship LNG price of between $3.65 and 4.25 per mBtu.

Sources said RasGas of Qatar, which is being courted by GAIL for supplies for the 740 MW Phase-I, has offered a price of $7.5 dollars per mBtu (at the prevailing crude price of $ 50 per barrel) FoB resulting in ex-Ship price of $ 7.76 per mBtu.

North West Shelf of Australia quoted a price of about 7 dollars per mBtu for supply of 0.5 million tonnes of LNG during 2006-07 and 2.3 million tonnes per annum from 2008 onwards.

Malaysia LNG offered 0.75 million tonnes of LNG per annum from Egypt at an ex-ship price of $7-8 dollars per mBtu. Oman LNG and ADGAS of UAE, the original LNG suppliers to Dabhol project, are also quoting a similar price, sources said.

Oman LNG has indicated availability of 0.6-0.8 million tonnes LNG in 2006, 1.0-1.2 million tonnes for 2007 and 1.6-1.8 million tonnes per annum from 2008 onwards. ADGAS has offered 0.7 to 1.3 million tonnes LNG per annum from 2006 onwards.

Ratnagiri Gas and Power Pvt Ltd, the special purpose vehicle promoted by Gail and National Thermal Power [Get Quote] Corp for takeover of Dabhol project, would import 0.64 million tonnes per annum of LNG in 2006, which would go upto 2.83 mmtpa in 2007 and 5 mmtpa from 2008 onwards.

The power plant (740 MW Phase-1 and 1444 MW Phase-II) requirs 2.1 mmtpa and the balance 2.9 mmtpa would be used for merchant sale, sources said.

Gail anticipates it would be able to complete the LNG terminal in 12 months from the date of possession of the plant while NTPC would restart the Phase-I by July 2006 and complete the 85 per cent complete 1444 MW Phase-II by end 2006.