The government has decided to give fertiliser sector top priority in allocation of natural gas to be produced from the gas fields of Reliance Industries, ONGC and others in the eastern offshore (Krishna Godavari basin). After fulfilling the unmet demand of fertiliser units, gas will be allocated to existing gas-based power units.
An Empowered Group of Ministers (EGoM) headed by External Affairs Minister Pranab Mukherjee decided that for 2008-09, the demand of existing gas-based fertiliser plants would be met first from the production of gas from the KG-D6 basin field of Reliance Industries Limited.
Reliance’s KG-D6 field will bridge the gap between demand of 43.169 million standard cubic meters per day and the current supply of about 29 mmscmd. It will then supply 18 mmscmd gas to power plants.
?Fertiliser sector has been accorded the top priority and after today’s decision it will get first preference on gas to be produced from fields operated by private firms,? Fertiliser Minister Ram Vilas Paswan told reporters after the meeting.
Besides the unmet demand of gas-based plants, about 6.5 mmscmd gas will be given to naphtha run plants that will convert to gas next year. Another 3.16 mmscmd gas would be allocated in 2010 to plants currently fired by fuel oil . Eight shut fertiliser plants will get 14.7 mmscmd gas by 2011-12, Paswan said.
Sources, however, said the EGoM has only decided to allocate gas coming into production by year end to existing gas fired fertiliser and power plants. For plants converting from liquid fuel to gas, allocation will be decided later.
Reliance is to begin gas output from KG-D6 by year end at an initial rate of about 37 mmscmd.