EGoM skips discussion on gas to ADAG power plants

Written by fe Bureaus | New Delhi | Updated: Jul 29 2010, 05:36am hrs
An empowered group of ministers (EGoM) headed by finance minister Pranab Mukherjee on Wednesday asked the petroleum ministry to indicate the availability of natural gas in future for allocation to fertiliser and power plants. The ministerial panel, however, did not discuss the Anil Dhirubhai Ambani groups request for gas to its new power plants.

Petroleum secretary S Sundareshan said,Petroleum ministry is to indicate gas availability in coming years to the department of fertiliser and ministry of power. They will give their requirements based on that, we will again go to the EGoM for new allocations.

The ministerial panel has allocated about 63 mmscmd of output from RILs KG-D6 fields to customers in fertiliser, power, petrochemical, steel and refinery sector. Since RIL has stated that it can produce only 60 mmscmd from KG-D6 consistently, the EGoM decided that 3 mmscmd of gas to be produced by state-owned ONGC from its western offshore C-Series fields will be allocated to customers around Uran region in Maharashtra, Sundareshan said.

Customers whose allocation was shifted from KG-D6 to C-Series fields included ONGCs LPG unit that was allocated 0.4 mmscmd of RIL gas. The panel decided to cancel ONGCs allocation and C-Series gas would be made available to it.

Customers for 2.1 mmscmd of KG-D6 will be allocated C-Series gas, he said. While KG-D6 gas is priced at $4.20 per million British thermal unit, the price for ONGCs C-Series gas has been fixed at $5.25 per mmBtu.

Sundareshan said RIL would hit peak output of 80 mmscmd from KG-D6 in 2012-13, while 9-12 mmscmd of gas would be produced from ONGCs new fields.