Govt asks RIL to supply gas according to marketing priorities

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New Delhi, Jun 25 (UNI) The government today asked Reliance Industries to supply natural gas from its eastern offshore KG-D6 field to fertiliser units first, then LPG plants and existing power plants, retaining the order throughout.

An Empowered Group of Ministers (EGoM), in an official statement said, all gas produced from areas awarded under New Exploration Licensing Policy (NELP) would have to sell the fuel ''in accordance with the marketing priorities determined by the government''.

The EGoM has fixed priority for the 25 million standard cubic metres per day of gas (mmscmd).

The production of natural gas from RIL's KG D6 field is expected to commence from September 2008 and will initially be about 25 mmscmd.

The production is expected to gradually increase to 40 mmscmd by March 2009.

The EGoM asked the company to first supply gas from KG-D6 field, the first major field of NELP to go on production, to existing gas-based urea plants, which are now getting fuel below their full requirement.

After urea plants, a maximum quantity of three mmscmd would be supplied to existing gas-based LPG plants and thereafter up to 18 mmscmd to gas-based power plants that were lying idle/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.

A maximum quantity of five mmscmd would be made available to City Gas Distribution projects for supply of Piped Natural Gas (PNG) to households and Compressed Natural Gas (CNG) in transport sector, it added.

Any additional gas available, beyond these categories would be supplied to existing gas-based power plants, as their requirement is more than 18 mmscmd, it said.

UNI SR PDT RK1904

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