GVK projects hit as RIL gas supply fluctuates

GVK has joined the list of power producers whose units have taken a hit from the uncertainty over supply of gas from Reliance Industries’ Krishna Godavari basin.

With supplies falling well short of the requirements, these companies have had to resort to unscheduled shutdowns and are even cutting down on generation.

According to sources, GVK had to shut down a 220 mw unit at Jegurupadu for about three days as gas supplies remained insufficient and the plant load factor (PLF) remained at less than 50%.

A company source confirmed the shutdown, but said RIL has resumed supplies since Wednesday. “There was a shutdown primarily because of insufficient supply. The unit is back to normal from late on Wednesday. We were told that Reliance, too, is putting in efforts to ensure the supplies remain constant,” the source said.

Though the source could not confirm the PLF post-resumption of supplies, it is learnt that gas supplies are still short of the total requirement and the PLF has been marginally upwards of 70%.
“It’s not GVK alone, others too are hit by inconsistent supplies,” he said.

GVK operates about 1,178 mw capacity on gas supplied by Reliance from its Krishna-Godavari basin. The capacities are spread between Jegurupadu I (235 mw), Jegurupadu II (479 mw) and Gautami Power (464 mw), all located in Andhra Pradesh.
In the second quarter ended September 30, 2011, the average plant load factor (PLF) of the power vertical of the company was at about 75%. While Jegurupadu I unit registered a PLF of about 76%, Jegurupadu II had a PLF of 74%. The Gautami Power unit had a load factor of 77%.

In fact, company officials have been preparing themselves for lower PLF in the third quarter compared with the second.