Group's overall strategy of establishing a presence in both the upstream and downstream segments of the energy value chain. The company is committed to using innovative, advanced and reliable technology for producing gas-based power.
GSEG was set up in 1998 as a power generation company. GSEG owns and operates a gas based power plant in Hazira that was commissioned in 2002. The plant was set up to provide electricity for the Gujarat state grid, with all electricity currently produced at the plant sold to Gujarat Urja Vikas Nigam Limited (GUVNL)
Government of Gujarat owned electricity company.
GSEG is in the process of extending the capacity of its Hazira plant. It has entered into a gas purchase contract with us to provide the gas required for the expanded plant, effective for 20 years from commissioning, with the gas to be bought at mutually agreed prices. The additional power to be generated will be bought by GUVNL pursuant to a 20 year procurement contract effective from commissioning.
GSPC Group decided to move into power generation as a part of its corporate diversification plan and embarked on a short gestation power project based on the use of natural gas from its gas fields. The Hazira area of Gujarat was chosen as the site for its first combined cycle power plant. To implement the project, GSPC promoted a separate company named Gujarat State Energy Generation Ltd (GSEG).
GSEG, in turn, selected Alstom as contractor for the project through international competitive bidding. Alstom supplied the plant on a turnkey basis. Its scope included two GT8C2 gas turbines with generators, a steam turbine with generator and heat recovery steam generators as well as the overall power plant control system. The contract also included civil works, balance-of-plant and buildings. GSEG employed Desein Consulting Engineers of Delhi as advisors and to supervise the turnkey contractor's compliance with the plant specification.
GSEG selected Evonik Energy Services (India) Private Ltd erstwhile Steag Encotec as O&M contractor for the project. The power purchase agreement for the project was signed with GUVNL (erstwhile GEB).
Project Development Highlights
Gujarat State Petroleum Corporation Ltd. (GSPC), engaged in Oil & Gas E & P, decided to diversify into downstream activities for value addition in the energy business and thus, GSEG was incorporated in December 1998.