Utilities in India turn to LNG as coal plants shut down

Utilities in India turn to LNG as coal plants shut down

 

Unviable operations, delayed payments and fuel shortages have lead to shutting down of coal-fired plants, and several state utilities in India turned to a more expensive power generated from LNG to meet the demand.

Inadequate domestic gas production forced several utilities to raise their gas-fired power generation significantly as well as buy expensive LNG.

The Economic Times of India report that Gujarat started running 1500 MW of LNG-powered plants as coal-fired plants were shut, which raised the price to the end users. Other regions have also restarted the gas-based plants that have been shut due to the high cost of power generation.

 

LNG World News Staff, September 1, 2014; Image: ONGC

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