This paper analysed the potential environmental impact of the natural gas-fired generating station in the surrounding area. The primary objective of this Study includes determination of the present environmental condition, study of the project related activities and assessment of the potential environmental effects due to these specific activities. The major environmental disciplines studied include ground and surface water hydrology, climatic condition, quality of air, noise, terrestrial and aquatic ecology. The power plant produce electricity using natural gas as fuel and natural gas does not contain any sulphur contents. The main pollutants are nitrous oxide (NO2), particulate matter (PM), CO from exhaust gas coming out from the turbine through stack and their values are well below National Ambient Air Quality Standards (NAAQS). Noise and Vibration in the study area is assed to be minor due plant operation and does not impact on local faunal species. Heavy metal concentrations in the groundwater found below the acceptable limit and suitable for using domestic and irrigation purpose. The analysis revealed that surface water quality is suitable for aquatic flora and fauna. Study also indicates that power plant has no negative impact on climatic condition, air quality and aquatic eco system.