Govt to support ramp-up of KG-D6

Move aimed at checking power shortage

Govt to support  ramp-up of KG-D6

The government on Tuesday said it is ready to give all support to ramp up production from Reliance Industries’ eastern offshore KG-D6 gas field, in a bid to improve power supplies to gas-based power plants.

“There is a painful need to reallocate the reduced gas. Several states including Andhra Pradesh are getting reduced gas for power generation,” Petroleum Minister S Jaipal Reddy said, adding that all other ministries would be consulted on the matter.

Incidentally Reddy’s home state Andhra Pradesh has been badly hit after a cut in gas supplies to power plants that has caused a shortage in electricity generation.

Power plants across the country get close to 12 million standard cubic meters per day (mmscmd) from the KG-D6 basin, and a drop in gas production in the basin has crippled power plants.

The production has dropped to 29 million units per day against the planned 80 million units. 

The situation worsened after the Oil Ministry recently ordered Reliance Industries to first meet the requirement of Dabhol power plant and distribute the remaining KG-D6 output among other users.

Following the order, the Ratnagiri Gas & Power Pvt Ltd (RGPPL), which runs the 1,967 MW Dabhol power plant, will get 7.6 mmscmd, leaving under 5 mmscmd to be divided among the 24 other power plants.

It is to be noted that RGPPL has been granted top priority in allocation of KG-D6 gas after the exit of its bankrupt owner, US-based Enron Corp.

Of the current output, over 14 mmscmd is also sold to fertiliser plants and about 3 mmscmd goes to LPG extraction plants, leaving 12 mmscmd for power plants.

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