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GAIL chief sees early end to gas crisis

Staff Reporter

Wide gap between demand and supply; steps afoot to step up production

MAKING A POINT: S.P. Rao, Chairman and Managing Director of GAIL, addressing a press conference in Rajahmundry on Thursday.

Rajahmundry: S.P. Rao, Chairman and Managing Director of Gas Authority of India Limited, has said that there is a wide gap between demand and supply of gas in the country and exuded confidence that the crisis will be overcome soon. As per Ministry of Petroleum and Natural Gas directive, no gas will be supplied to the new independent power plants (IPP) unless the situation improves, says the CMD.

Addressing a press conference after inaugurating GAIL's new administrative regional office here on Thursday, Mr. Rao said that there was a demand for 15 million cubic metres of gas per day against 6.5 million cubic metres of supply. "Gas availability is very limited. The natural gas in the K.G. Basin from producers, mainly ONGC, has come down. Presently, the gas availability in KG Basin is around 6.2 Million Metric Standard Cubic Metres per Day (MMSCMD). So we are supplying to our customers on pro rata basis in line with the decision taken by the Ministry," he said.

Gas to new power units

The CMD explained that the company was in dialogue with ONGC as well as the JV operators in Ravva fields to step up their production from the existing sources so as to tide over the crisis. With new gas finds by Reliance, GSPC, Cairn and ONGC, there would be additional gas availability.

When asked to clarify about supplying gas to new power plants in private sector, the CMD said the company was in a position to supply gas for their preliminary operations like trail run and not in a position to assure IPPs of supplying gas continuously.

He said that after new gas findings, they would implement Master Plan under which they would take up City Domestic Network in 40 to 50 cities in the country to supply gas through pipeline.

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