Two-third of extra RIL gas for power units

Last Updated: Tuesday, October 27, 2009 - 23:42

New Delhi: The government on Tuesday allocated two-third of additional gas output from Reliance Industries` KG D-6 fields to power plants, while for the first time allowing the Mukesh Ambani firm to use the fuel at its petrochemical plants and refineries.

An Empowered Group of Ministers headed by Finance
Minister Pranab Mukherjee met this afternoon to fix users for
the 50 million standard cubic meters per day of gas that RIL
will produce beyond the initial 40 mmscmd for which consumers
were decided earlier, Oil Secretary R S Pandey told reporters.

State-run NTPC and other power producers will get over 34
mmscmd of more gas. This together with 18 mmscmd already
allocated from initial volumes would bridge the fuel deficit
at existing plants and those to be commissioned this year.

Refineries, including those of RIL, will get 5.384 mmscmd
of gas on firm basis and an additional 6 mmscmd when output
from KG D-6 stabilises at 90 mmscmd, he said.

RIL`s petrochemical plants have been allocated 1.918
mmscmd, 0.178 mmscmd would go to non-urea subsidized
fertilizer plants and 0.44 mmscmd to steel plants.

The EGoM, Pandey said, had allocated 20 mmscmd of gas on
firm basis and the balance 30 mmscmd on temporary or fallback
basis till such time that RIL is confident of producing 90
mmscmd of gas on a sustained basis.

"Based on technical assessment provided by the operator,
production (from KG D-6) will reach 60 mmscmd by December,"
Pandey said adding the firm allocations would begun to flow by
then.

The seven-member EGoM, Pandey said, met to decide users
for about 50 mmscmd of gas from KG D-6 beyond the initial 40
mmscmd output that was previously distributed primarily to
urea and power plants.

Of the initial volumes already allocated, 15.33 mmscmd
had gone to urea plants, 18 mmscmd to power plants, 3 mmscmd
to LPG making units, 3.75 mmscmd to steel plants and city gas
projects have got 0.87 mmscmd.

Sources said the allocation to power sector has been made
considering 75 per cent of plant capacity for units in Andhra
Pradesh and 70 per cent outside the state which is the
landfall point of KG-D6 gas.

The previous 18 mmscmd was allocated considering 70 per
Plant Load Factor (PLF) or installed capacity in Andhra
Pradesh and 60.5 per cent outside the state.

Further, an additional 11.99 mmscmd is proposed to be
allocated to power plants and those to be commissioned this
year on fallback basis to further increase their PLF. Another
10 mmscmd has been allocated to captive power plants on
fallback basis, sources said.

An additional 0.44 mmscmd gas from KG-D6 will be allotted
to existing gas-based steel plants on firm basis on top of the
3.75 mmscmd already allocated.

RIL`s Gandhar petrochemical plant will get 1.168 mmscmd
of KG-D6 gas while its Nagothane plant would get 0.75 mmscmd.

Since the refineries are using costly alternatives like
fuel oil for processing and burning naphtha for hydrogen
production, the EGoM will consider replacing these with
cheaper and environment-friendly fuel.

Bureau Report



First Published: Tuesday, October 27, 2009 - 23:42

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