Govt allocates bulk of KG-D6 gas from RIL to power sector

An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee on Tuesday allocated bulk of the additional natural gas from Reliance Industries’ Krishna Godavari D6 gas fields to power plants, reports HT Correspondent.

An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee on Tuesday allocated bulk of the additional natural gas from Reliance Industries’ Krishna Godavari D6 gas fields to power plants.

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A ministerial group had earlier apportioned the initial 40 million metric standard cubic metres of gas per day (mmscmd) output from KG-D6 fields to urea and power plants.

“Today, the EGoM has fixed users for about 50 mmscmd of gas,” Petroleum Secretary R.S. Pandey told reporters.

However, Pandey said the EGoM did not discuss the issue of marketing margin for the gas allocated from KG-D6 on Tuesday’s meeting.

Of the 50 mmscmd, 20 mmscmd would be allocated on firm basis, while the balance on temporary or fall-back basis till such time that RIL is confident of producing 90 mmscmd of gas on a sustained basis.

RIL has said production capacity from KG-D6 has far exceeded the initial output of 40 mmscmd, for which buyers have been tied-up, and had demanded naming additional customers to avoid irreversible damage to the field reservoirs.