Govt allocates higher kg-D6 gas for Dabhol

The government has decided to double the gas allocation to Ratnagiri Gas and Power Project Ltd, the firm that runs the Dabhol power plant, from the KG-D6 gas fields.

The government has decided to double the gas allocation to Ratnagiri Gas and Power Project Ltd (RGPPL), the firm that runs the Dabhol power plant, from the KG-D6 gas fields of Mukesh Ambani controlled Reliance Industries Ltd (RIL).

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In a September 15 letter to RIL and its partner Niko Ltd, the ministry of petroleum and natural gas said, “It has been decided to increase the KG-D6 gas allocation to RGPPL from 2.7 million standard cubic meters per day (mscmd) to 5.67 mscmd from October 1, 2009.”

RIL had in a letter had asked the government to immediately name new customers of its natural gas (from KG-D6), saying it is being forced to produce less than capacity in the absence of mandated buyers.

RIl had said RGPPL had signed a contract with RIL and is not taking the fuel as its current arrangement for sourcing LNG runs up to September end.