Chief minister N Kiran Kumar Reddy in a letter urged defence minister AK Antony, who is also chairman of the Empowered group of Ministers (EGoM) on petroleum and natural gas issues, to treat power generation on a par with the fertiliser sector.
By impacting pro rata cut in natural gas supplies to the fertiliser sector as was done with power plants when they were receiving reduced quantities of natural gas from the K-G D6 fields, the state could get 2.6 mmscmd (million metric standard cubic metre per day), the chief minister said in the letter.
More From This Section
Reliance Industries-operated gas fields in the K-G Basin have completely stopped supplies to power plants, including those in AP, from the beginning of this month as the current production is only sufficient to meet the requirements of the fertiliser sector, which gets the top priority in gas supplies. While 17 mmscmd natural gas is being supplied to fertiliser plants, another 1.5 mmscmd is being given to LPG plants.
IPPs move high court
Some of the IPPs, meanwhile, have approached the Andhra Pradesh high court with almost similar argument. "In our petition, we have made our case stating that at least the gas-power projects in AP should qualify for a similar status given to the fertiliser sector as the natural gas is being produced in this state," a top executive of a power company told Business Standard.
Power is also closely linked to food security because a significant area in AP is being irrigated through 3 million-odd electric pump sets.
At present, only the old plants, which had secured supplies from ONGC under the administrative price mechanism (APM), are producing power, that too at reduced plant load factors (PLF) even after being supplemented by RLNG (regasified liquefied natural gas) swapping in addition to naphtha.
The private sector is producing just 500-800 Mw as against the existing installed capacity of over 2,400 Mw, according to power utilities.
“All that the government had done was to swap RLNG with the limited gas quantities being given to LPG plants from K-G D6. Now it has to approach the fertiliser ministry for gas swapping to ramp up power generation,” said another power company official on condition of anonymity.
With the government keeping all hopes only on the proposed LNG terminal projects on the AP coast, no independent effort was made to secure LNG under long-term contracts. Thus, the government has to spend more to buy LNG at spot prices ranging as high as $25 per mmBtu even if the fertiliser ministry agrees to swapping, observers said.