RIL refineries to get one-fifth of gas from KG-D6

An Empowered Group of Ministers (EGoM) had on October 27 allocated one-fourth of the additional 20 mmscmd gas that RIL is ready to produce from KG-D6 to refineries.

“Refineries had projected a demand of 25.20 mmscmd but since the EGoM allocated only 5 mmscmd,the same has been allocated on pro-rata basis,” an Oil Ministry official said.

State-run Indian Oil got 1.6 mmscmd while HPCL and BPCL have been allocated 0.26 and 0.20 mmscmd respectively. Private sector Essar Oil would get 0.60 mmscmd against a demand of 3 mmscmd for use at its Vadinar unit in Gujarat.

RIL,which had so far not been allocated any gas from KG D-6,is currently buying imported liquefied natural gas at 60 per cent premium to the price of gas from its own block in the Krishna-Godavari Basin.

Of the 20 mmscmd,12.9 mmscmd has gone to power plants,the official said,adding the new customers notified to RIL include state-run NTPC who has been given 2.71 mmscmd.

The government had previously fixed users for the first 40 mmscmd output from KG-D6 fields which has transformed the electricity scenario and boosted growth. Of the initial output,18 mmscmd had gone to power plants.

The official said out of the additional allocation made on firm basis,NTPC will get 2.71 mmscmd,Lanco’s Kondapalli plant (1.46 mmscmd),GMR Energy’s Tanir Bavi (0.88 mmscmd – both in Andhra Pradesh),Rithala (0.40 mmscmd),Bawana plants (0.93 mmscmd – both in Delhi) and Gujarat’s Uran plant (1.40 mmscmd).

An additional 12 mmscmd was allocated to existing power plants if the output from KG-D6 stabilises above 65 mmscmd,raising the total allocation to the sector to 43.165 mmscmd,he said.

The EGoM,on October 27,fixed users for the 50 mmscmd of gas that RIL will produce beyond the initial 40 mmscmd for which consumers were decided earlier. 20 mmscmd of the additional allocation was made on firm basis while the rest on temporary or fallback basis.

RIL’s petrochemical plants have been allocated 1.918 mmscmd,0.178 mmscmd would go to non-urea subsidized fertiliser plants and 0.44 mmscmd to steel plants,he said.

“Based on technical assessment provided by the operator,production (from KG D-6) will reach 60 mmscmd by December,” the official said,adding the firm allocations would begin to flow by then.

The EGoM also approved giving an additional 2 mmscmd to city gas projects over and above the 0.87 mmscmd already contracted from existing volumes.

RIL has said production capacity from KG-D6 has far exceeded the 40 mmscmd,for which buyers have been tied-up and additional customers had to be named immediately to avoid irreversible damage to the field reservoirs.