Two-third of extra RIL gas for power units
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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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