The Hindu : Front Page : Gas supplies: ‘accord priority to fertilizer, LPG plants’

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Thursday, Jun 26, 2008
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Gas supplies: ‘accord priority to fertilizer, LPG plants’

Special Correspondent

Reliance to start pumping in gas from September

NEW DELHI: The Petroleum and Natural Gas Ministry on Wednesday notified the new guidelines approved by the Empowered Group of Ministers (EGoM) asking Reliance Industries to set priority for supplying natural gas from its Eastern offshore KG-D6 field first to fertilizer units, LPG plants and the existing power plants.

The EGoM headed by the External Affairs Minister, Pranab Mukherjee, had decided that the companies which produced gas from areas awarded under the New Exploration Licensing Policy (NELP) would have to sell the fuel in accordance with the marketing priorities determined by the Government, according to an official statement here on Wednesday. The EGoM has fixed priority for the 25 million standard cubic metres daily of gas Reliance plans to start pumping in from September this year and 40 mmscmd from March 2009.

The EGoM has asked the company to first supply gas from the KG-D6 field, the first major field of NELP to go on production, to the existing gas-based urea plants, which are now getting fuel below their full requirement. After urea plants, a maximum quantity of 3 mmscmd would be supplied to the existing gas-based LPG plants and thereafter up to 18 mmscmd to gas-based power plants that were lying idle or under-utilised or likely to be commissioned in 2008-09 or liquid fuel plants, which are now running on liquid fuel and could switch over to natural gas.

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