The Ministry of Petroleum and Natural Gas has gone ahead and directed Reliance Industries Ltd (RIL) to make additional allocation of natural gas from its Krishna-Godavari (K-G) basin find to nine power companies from the surplus available because of no or low offtake by fertiliser units. This is in accordance with an earlier decision by the Empowered Group of Ministers (EGoM) on gas utilisation. Among the companies to benefit are Anil Ambani’s Reliance Infrastructure, Gautami Power, GVK Industries, Lanco Kondapalli Power, Torrent Power, Gujarat Paguthan Energy, Vemagiri Power and Maharashtra State Power Generation Company. RIL had, in April, signed gas sales and purchase agreements (GSPAs) with these nine customers in the power sector for approximately 11 million metric standard cubic metres per day (mmscmd) at 11 different power generation facilities.
Additional allocation under the fall-back arrangement will ensure that the plant load factor of Andhra Pradesh-based power plants would at least be 70 per cent and non-AP plants be 60 per cent. This will help in improving the plant load factor of the power producers in proportion in the interim. However, as and when the steel companies begin to lift 3.75 mmscmd of gas, or the LPG plants of GAIL and ONGC begin consuming 3 mmscmd, the surplus will get reduced.
According to government’s gas utilisation policy, allocation of gas from RIL’s K-G basin is to be made to gas-based urea plants, gas-based LPG plants, gas-based power plants and city gas projects. RIL began gas production from its K-G basin in April this year and is currently estimated to be producing 26.5 mmscmd. This would be ramped up to 30 mmscmd by June-end and 40 mmscmd by July.crackcrack
| Company Name | CMP |
|---|---|
| Reliance Industries | 1362.60 |
| Indian Oil Corp. | 147.00 |
| BPCL | 316.00 |
| HPCL | 379.20 |
| MRPL | 180.00 |
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