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Domestic gas production likely to fall in the coming years: Power Ministry

26 Mar 2012 Evaluate

Domestic gas production is likely to fall in the coming two years and the power ministry has advised power developers not to plan any projects based on domestic gas till 2015-2016. The power ministry has issued a notification stating that Ministry of Petroleum and Natural Gas has indicated that NELP (new exploration licensing policy) gas production was likely to go down by 15.03 mmscmd in 2012-13 and further by 3.42 mmscmd in 2013-14 as compared to the availability of 42.67 mmscmd in 2011-12. Further, no projections have been made for the years 2014-15 and 2015-16. Hence no additional gas is likely to be available till 2015-16.

The notification could increase troubles for power generating companies some of which have plants ready but not operational due to the shortage of gas. Given the shortages, the Association of Power Producers which includes private power producers such as Reliance Power, Tata Power, Lanco Infratech and the Adani group are of the opinion that gas price pooling should be allowed as this alone would ensure fuel for 9,500 MW of upcoming projects. However, the power ministry has rejected the plea stating that it is a non workable solution. 

 

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