Seeks meeting of EGoM on gas allocation and utilisation

Expressing concern over the dwindling gas production from the Reliance Industries Limited (RIL)-owned KG-D6, the Power Ministry has sought immediate allocation of gas for nearly 8,200 MW gas-based capacities lying idle for want of gas. It has also sought a meeting of the Empowered Group of Ministers (EGoM) on gas allocation and utilisation to review the situation in view of the changed circumstances.

In an internal note seeking convening of EGoM on gas allocation, the Power Ministry suggested that the Petroleum and Natural Gas Ministry should take up the matter for pro rata cut of KG-D6 gas to all sectors, including fertilizer and LPG. This would spare gas for the power sector. It said the requirement of gas for various projects, which, inter-alia, included the projects of the XI Plan and early XII Plan, which are in advanced stage of construction, was sent to the Petroleum Ministry a year ago. The EGoM, during its meeting on February 24, 2012, had noted their requirement but did not allocate the gas to these projects due to non-availability of the same. “The dwindling gas production from the KG-D6 field has had significant adverse impact on power production of the existing as well as ready-for-commissioning projects,” the official note states.

It further states that at present around 8,200 MW of gas-based capacity, which is at an advanced stage, could be quickly commissioned, if gas is made available to them. “The allocation of gas to these projects may be considered to avoid their getting stranded. The matter may, therefore, be placed before the EGoM along with other agenda item for suitable direction in this regard,’’ the Power Ministry note states. The Power Ministry has stated that it is evident that there is a continuous shortfall in supply from KG-D6 resulting in a low plant load factor (PLF) of existing power plants. The Petroleum Ministry has also stated that the present production level was not sufficient to meet the core sector allocation of 52.064 million metric standard cubic meters per day. As a result, supply to the core sectors such as fertilizer and LPG is being fully met but that to the power sector was being met partially.

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