KG-D6 stares at gas drought,power sector supplies dwindle

Natural gas output from Reliance Industries’ KG-D6 fields would sharply drop to 27.60 million cubic metres a day from April thereby squeezing domestic gas supply to the power sector

Written by Express News Service | New Delhi | Published:February 16, 2012 12:43 am

Natural gas output from Reliance Industries’ KG-D6 fields would sharply drop to 27.60 million cubic metres a day (mscmd) from April thereby squeezing domestic gas supply to the power sector.

“The revised sales profile of KG-DWN-98/3 (KG-D6) received from the contractor in the Work Programme and Budget for 2012-13 shows that output would dwindle to 27.60 mscmd (from current 34.5 mscmd),” said an official. The revised sales profile projected for 2013-14 shows the output at 22.60 mscmd,an all-time low from KG-D6 which was touted to touch 80 mscmd in April after all the 31 wells envisaged in the development plan are drilled and brought to production.

Considering the supply hierarchy instituted last March by the Petroleum Ministry on NELP gas,the demand of fertiliser,LPG,power and city gas distribution are to be catered to in that order with cuts imposed in the reverse order if the supply falls short.

Since KG-D6 gas is the only NELP gas available in the next fiscal year,fertiliser and LPG sectors would get full supply as per their next year allocation of 24.09 mscmd and 2.59 mscmd respectively,leaving a paltry 2.59 mscmd for the power sector,said the official. Power sector was allotted 32.68 mscmd for 2011-12 but its supplies are now halved to 16.2 mscmd.

Natural gas under APM not in EGoM ambit: OilMin

With Reliance gas dwindling further,the Petroleum Ministry has refused to entertain any changes in the distribution of natural gas covered under the administered pricing mechanism (APM) saying it was “outside the purview of the Empowered Group of Ministers”.

Fertiliser and power sectors had sought preferential allocation of 18 million standard cubic metres (mscmd) of APM gas per day by cancelling its allotment to non-core sectors on the pecking order currently applied on gas obtained from blocks that were awarded based on competitive bids under the New Exploration Licensing Policy (NELP).

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