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Home News Power Sector News EGOM approves RIL's KG-D6 gas to power projects

EGOM approves RIL's KG-D6 gas to power projects

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Power projectsThe round two of gas supplies from Reliance Industries' eastern offshore KG-D6 fields is about to start and this time it is the power sector that will get a large chunk of the company's initial gas output. With a top government panel finalising which power plants get how much of gas, Reliance's KG basin is all set to alter the electricity generation scenario of India. The sale of gas might eventually help the capital power up for the upcoming Commonwealth Games.

“The gas allocation process for the fertiliser sector is already done now and with power sector it should start in next few days,” said Petroleum Secretary RS Pandey. Initially Reliance is expected to supply nearly 13 million cubic metres of gas per day to power projects of which seven NTPC plants will get 5.42 million cubic metres.

The power plants in Andhra Pradesh will be supplied 2.7 million cubic metres which include GMR's Vemagiri, GVK's Jegurupadu and Lanco's Kondapalli unit. While other projects in Gujarat such as Essar, Gujarat Puguthan and Gujarat Industries Power will get 2.4 million cubic metres.

RIL is expected to charge a marketing margin between 13.5 -14 US cents/ mBtu over a base price of $4.2 and may agree to get paid in rupee terms as it did for fertiliser firms.Analysts say RIL gas will lift power generation by 3 per cent in a country where a little more than 400 million of its 1.1 billion people have access to electricity.

Top government sources say more gas could be diverted from city gas distribution and other LPG projects' share to Bawana and Rithala power plants in Delhi ahead of the commonwealth games and also to the beleaguered Dabhol plant.

“The need of power sector is certainly higher specially in the summers but any swapping or change in priority has to be approved by appropriate authority, which is EGoM in this case," said Pandey.Analysts say RIL's gas will help the power companies to add additional capacity of around 4,000 megawatts that is enough to light up a city like Delhi.

Source - NDTV

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