Falling in line with an oil ministry order, Reliance Industries Ltd (RIL) on Monday cut natural gas supplies to non-core users such as refineries and steel plants so that full demand of fertiliser and power plants can be met.
RIL, from 6am, started implementing the ministry’s priority allocation order which had asked it to first supply natural gas from its KG-D6 fields to priority sector such as urea-making units and power plants. Supplies to non-core refineries will be made only if there are any volumes left after supplies to priority sector.
“RIL this morning curtailed gas supplies to non-core users, including its own refineries and petrochemical plant,” an industry official said.
The directive followed a sharp drop in output at KG-D6 fields. Production fell from 61.5 million standard cubic metres per day achieved in March, 2010 to under 50 mmscmd, instead of rising to about 69 mmscmd as was projected. When contacted, a RIL spokesperson did not offer any comments.