Ministry ‘no’ to Reliance gas demand

The Petroleum Ministry has recommended against Reliance Industries Ltd, which sought allotment of gas for its captive use out of the first 40 million standard cubic metres of gas per day to be produced shortly from its D6 gas block in the KG basin, reports Anupama Airy.

The Petroleum Ministry has recommended against Reliance Industries Ltd, which sought allotment of gas for its captive use out of the first 40 million standard cubic metres of gas per day to be produced shortly from its D6 gas block in the Krishna Godavari (KG) basin.

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A senior ministry official told Hindustan Times that the his department had recommended to the Empowered Group of Ministers (EGOM) under the chairmanship of External Affairs Minister Pranab Mukherjee that any allocations of gas to Reliance for its captive use including its petrochemical plants and refinery be made only after 2010—when there is an increase in the production from KG-D6 beyond 40 mmscmd.

“Any unutilised quantity of gas — out of the first 40 mmscmd allocation made to fertiliser, power and city gas distribution sector — will be supplied to the existing gas based power plants to further enhance their plant load factor and to other power plants in consultation with the ministry of power,” said a note from the Petroleum Ministry for the EGOM meeting.

The ministry also wanted gas for NTPC’s plants which is against Reliance’s move that it will not give gas to NTPC until the outcome of ongoing case between the two in the Mumbai High Court.