<p>After power plants, LPG producing units are the latest to face complete stoppage of natural gas supplies from Reliance Industries' KG-D6 block after output from the eastern offshore fields dropped to an all-time low.<br /><br /></p>.<p>"KG-D6 gas supplies to our LPG plants has completely stopped. We are getting no gas," a GAIL official said.<br /><br />GAIL was allocated 2.59 million standard cubic metres per day of gas from KG-D6 fields for production of cooking gas (LPG).<br /><br />KG-D6 production has dropped to just over 14 mmscmd which is enough to met the requirement of fertiliser plants, which had been given top priority in gas supplies.<br /><br />The government had given fertiliser top priority in allocation and supply of KG-D6 gas. After fertiliser, LPG units was given second top most priority, followed by power, steel, refineries and petrochemicals in that order.<br /><br />This meant when KG-D6 production started to fall towards 2010-end, supplies to non-core sectors of steel, refineries and petrochemicals was first cut pro-rata and then completely stopped.<br /><br />Since early May, none of the 25 power plants that were allocated gas from KG-D6 fields, have not received any supplies, sources said.<br /><br />Of the current output 14.2 mmscmd is being consumed by the urea-manufacturing fertiliser plants and a small quantity is being used to fire the East-West pipeline that transports the fuel from its landfall point at Kakinada in Andhra Pradesh to Baruch in Gujarat.<br /><br />This left no gas for LPG plants, sources said. A RIL spokesperson could not be immediately reached for comments.<br /><br />The Bay of Bengal KG-D6 fields, which began gas production in April 2009, had hit a peak of 69.43 mmscmd in March 2010 before water and sand ingress led to shutting down of more than one-third of the wells.<br /><br />This peak output comprised 66.35 mmscmd from Dhirubhai-1 and 3, the largest of the 18 gas discoveries on the KG-D6 block, and 3.07 mmscmd from MA field, the only oil discovery on the block.<br /><br />D1&D3 output has since fallen to about 10 mmscmd while gas production from MA field, which had hit a peak of 6.78 mmscmd in January 2012, has fallen to just about 4 mmscmd.<br /><br />Sources said when KG-D6 gas production began to dip sharply, the government in 2011 ordered a pro-rata cut in supplies to 25 power plants which had an original allocation of 28.90 mmscmd of gas.<br /><br />But there was no cut in the 15.668 mmscmd allocation to 16 fertiliser plants and LPG units that were allocated 2.59 mmscmd.<br /><br />Sources said for the last two months, LPG plants were not getting its full share as KG-D6 production as not enough to meet demand of both fertiliser plant and LPG unit. Supplies to LPG units has now completely stopped.</p>
<p>After power plants, LPG producing units are the latest to face complete stoppage of natural gas supplies from Reliance Industries' KG-D6 block after output from the eastern offshore fields dropped to an all-time low.<br /><br /></p>.<p>"KG-D6 gas supplies to our LPG plants has completely stopped. We are getting no gas," a GAIL official said.<br /><br />GAIL was allocated 2.59 million standard cubic metres per day of gas from KG-D6 fields for production of cooking gas (LPG).<br /><br />KG-D6 production has dropped to just over 14 mmscmd which is enough to met the requirement of fertiliser plants, which had been given top priority in gas supplies.<br /><br />The government had given fertiliser top priority in allocation and supply of KG-D6 gas. After fertiliser, LPG units was given second top most priority, followed by power, steel, refineries and petrochemicals in that order.<br /><br />This meant when KG-D6 production started to fall towards 2010-end, supplies to non-core sectors of steel, refineries and petrochemicals was first cut pro-rata and then completely stopped.<br /><br />Since early May, none of the 25 power plants that were allocated gas from KG-D6 fields, have not received any supplies, sources said.<br /><br />Of the current output 14.2 mmscmd is being consumed by the urea-manufacturing fertiliser plants and a small quantity is being used to fire the East-West pipeline that transports the fuel from its landfall point at Kakinada in Andhra Pradesh to Baruch in Gujarat.<br /><br />This left no gas for LPG plants, sources said. A RIL spokesperson could not be immediately reached for comments.<br /><br />The Bay of Bengal KG-D6 fields, which began gas production in April 2009, had hit a peak of 69.43 mmscmd in March 2010 before water and sand ingress led to shutting down of more than one-third of the wells.<br /><br />This peak output comprised 66.35 mmscmd from Dhirubhai-1 and 3, the largest of the 18 gas discoveries on the KG-D6 block, and 3.07 mmscmd from MA field, the only oil discovery on the block.<br /><br />D1&D3 output has since fallen to about 10 mmscmd while gas production from MA field, which had hit a peak of 6.78 mmscmd in January 2012, has fallen to just about 4 mmscmd.<br /><br />Sources said when KG-D6 gas production began to dip sharply, the government in 2011 ordered a pro-rata cut in supplies to 25 power plants which had an original allocation of 28.90 mmscmd of gas.<br /><br />But there was no cut in the 15.668 mmscmd allocation to 16 fertiliser plants and LPG units that were allocated 2.59 mmscmd.<br /><br />Sources said for the last two months, LPG plants were not getting its full share as KG-D6 production as not enough to meet demand of both fertiliser plant and LPG unit. Supplies to LPG units has now completely stopped.</p>