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EGoM meet on Tuesday on gas allocation

business Updated: Oct 26, 2009 21:00 IST
HT Correspondent

The Empowered Group of Ministers (EGoM) on gas allocation will meet on Tuesday to discuss additional allocations of gas from the Krishna Godavari (KG) gas fields of Mukesh Ambani’s Reliance Industries Ltd (RIL).

This time around, gas allocations will also be made to sectors other than the power, fertiliser and city gas distribution and will include allocations to steel, petrochemicals, LPG and refineries.

While 40 million standard cubic metres per day of KG-D6 gas already stands allocated, the EGoM on Tuesday will consider allocation of another 50 mmscmd of gas. This follows projections by the Directorate General of Hydrocarbons (DGH) that the KG D-6 gas field has a maximum production potential of 90 mmscmd.

“The contractor (RIL) has informed that KG-D6 has the potential to produce more than 60 mmscmd and the production of 80 mmscmd will be achieved by the year end,” said the agenda of the EGoM meeting on Tuesday.

As a result, the EGoM proposes to allocate 20 mmscmd of gas on a firm basis and 30 mmscmd on a fall-back (temporary) basis.

The proposal is to allot 52 mmscmd to power including captive power plants. Out of this 18 mmscmd gas has been already allocated and another 12 mmscmd each is proposed to be allocated on firm and fall-back basis besides around 10 mmscmd to captive power plants.

In case of the fertiliser sector, 15 mmscmd of gas has already been allocated and another 0.2 is proposed to be allocated by the EGoM. Another 4 mmscmd is proposed for steel, 3 mmscmd each for city gas distribution and LPG production, 2 mmscmd for use by petrochem units, and about 11 mmscmd to the refineries, including 5 mmscmd on firm basis and 6 mmscmd on fallback basis.