RIL inks pact to sell gas from KG-D6 to Indo Gulf Fertilizer

RIL signed a Gas Sales and Purchase Agreement (GSPA) to sell 0.228 million standard cubic metres per day of gas to Indo Gulf's Jagdishpur plant, industry sources said.

However, supplies are yet to begin as Indo Gulf is still negotiating an agreement to transport gas through state-owned GAIL India Ltd's pipelines.

Sources said RIL is also to sign a GSPA to sell 0.27 mmscmd of gas to fertiliser cooperative IFFCO's Phulpur plant. The government had last year allocated KG-D6 gas to the two urea manufacturing units but a GSPA could not be signed due to differences over sales tax liability.

The new agreements are likely to result in a cut in supplies to LPG extraction plants of GAIL. So far, the dwindling gas supplies from KG-D6 had been just enough to meet contracted demand for fertiliser and LPG units.

At current production of under 17 mmscmd, supplies to power plants had already been snapped. Since last week, none of the 25 power plants that were allocated gas from KG-D6 fields, are getting any supplies, sources said.

Of the present production, about 15.2 mmscmd was supplied to top priority urea-making fertiliser plants and the rest was consumed by state-owned GAIL India Ltd's LPG extraction units.

This left no gas for power plants, which are placed third on the priority list of consumers receiving KG-D6 gas.

Sources said GAIL's LPG plant is getting about 10-15 per

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