Power sector to get lion’s share of KG gas | business | Hindustan Times
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Power sector to get lion’s share of KG gas

business Updated: Apr 09, 2009 23:03 IST
Anupama Airy

The power sector has emerged as the largest beneficiary in getting a share of the first phase of 40 million standard cubic metres of gas per day (mmscmd) produced by Reliance Industries Ltd from its KG-D6 offshore block in the Krishna Godavari basin.

As against an earlier allocation of 18 mmscmd of gas to the power sector, the Empowered Group of Ministers (EGoM) on Thursday decided to allocate an additional unutilised portion of 5 mmscmd gas to the power plants, which was earlier meant for city gas distribution and cooking gas extraction projects.

Following EGoM’s decision on Thursday, power sector will get 23 mmscmd or nearly 57 per cent of Reliance’s first phase gas production of 40 mmscmd. The EGoM has already allotted 15.3 mmscmd gas to the fertiliser companies, contracts for which are being signed currently.

A senior Petroleum Ministry official said that out of the originally earmarked portion of 18 mmscmd, 2.7 mmscmd gas will be allotted to the Ratnagiri (erstwhile Dabhol) power project.

“From the balance 15.3 mmscmd, all existing gas-based stations in Andhra Pradesh, including those pending for commissioning due to shortage of gas, will be allocated gas to make them run at 70 per cent plant load factor (measure of the output of a power plant),” he said.

“Around 4.5 to 5 mmscmd gas will be supplied to the power plants of NTPC.”

The exact quantity of gas to individual power companies, he said, will be decided by an implementation committee comprising officials of power and petroleum ministries.