Govt allocates two-third of extra gas from RIL to power plants

Govt allocates two-third of extra gas from RIL to power plants

New Delhi: The government on Tuesday allocated two-third of additional gas output from Reliance Industries’ KG D-6 fields to power plants, while for the first time allowing the Mukesh Ambani firm to use the fuel at its petrochemical plants and refineries.

An empowered group of ministers (EgoM) headed by finance minister Pranab Mukherjee met on Tuesday afternoon to fix users for the 50 million standard cubic meters per day of gas that RIL will produce beyond the initial 40 mmscmd for which consumers were decided earlier, oil secretary RS Pandey told reporters.

State-run NTPC and other power producers will get over 34 mmscmd of more gas. This together with 18 mmscmd already allocated from initial volumes would bridge the fuel deficit at existing plants and those to be commissioned this year.

Refineries, including those of RIL, will get 5.384 mmscmd of gas on firm basis and an additional 6 mmscmd when output from KG D-6 stabilizes at 90 mmscmd, he said.

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

Pandey said the EgoM had allocated 20 mmscmd of gas on firm basis and the balance 30 mmscmd on temporary or fallback basis till such time that RIL is confident of producing 90 mmscmd of gas on a sustained basis.

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