Tripura (located in the North Eastern part of India) is endowed with commercially exploitable gas resources that had not been commercially exploited on account of various factors like lack of adequate road/rail infrastructure, weak transmission infrastructure and vast distances to load centres in northern & western part of India. In spite of all these challenges and in order to optimally utilise the gas available in Tripura, OTPC has established a 726.6 MW Combined Cycle Gas Turbine (CCGT) power plant along with an associated power transmission system from the power plant to Bongaigaon in Assam.
- Optimal utilization of Gas Reserves: Power generation at wellhead and transmission of power implies better economics vis-à-vis the option of gas transport and power generation at load center. Given that power sector is the single largest consumer of gas in the country, the project was looked upon to obviate the necessity to transport gas to demand centers in North India. The power plant provides a market to ONGC for its gas and at the same time OTPC benefits from long-term gas pricing mechanism devoid of traditional risks of oil price linkage or market volatility.
- Monetization of Idle Gas Assets: While maintaining focus on its core business of exploration and production (E&P) of oil and gas, ONGC has been able to forward integrate and monetize its natural gas assets in the region through establishment of the power plant.