Oman offers gas in exchange for coal [View All]

[phantom power]

Indian coal has a high-ash content, one reason why some domestic coal-based power plants mix it with higher quality coal that is imported. However, Oman wants Indian coal for this very reason. Fly ash is a key component in the manufacture of cement and Oman, currently going through an infrastructure and construction boom, needs as much of the building material as it can get.

In return, India will get natural gas, currently in short supply across the world, to run its power plants. Gas is also a key input for fertilizer plants. Several power plants in India that run on gas have had to shut down because of scarcity of the fuel.

Recently, the 2,150MW Ratnagiri Gas and Power Pvt. Ltd’s plant (earlier called the Dabhol Power Co.), India’s largest gas-fired power facility, had to close down because of the lack of fuel.

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According to the (Indian) power ministry, if natural gas becomes available at reasonable price through arrangements such as the one being discussed with Oman, more gas-based projects can be commissioned in the last years of the 11th Plan period (2007-12).

http://www.livemint.com/2007/08/23003621/Oman-offers-gas-in-exchange-fo.html