Till 2015-16, power sector to get more gas

Power minister Jyotiraditya Scindia said, 'Starting 2013-14 until 2015-16, all additional gas would be given to the power sector'

An empowered group of ministers (EGoM) led by defence minister A K Antony today decided to supply the additional gas that would be available in the next three years to power sector.

“Starting 2013-14 until 2015-16, all additional gas would be given to the power sector. The gas offered to fertiliser needs to be supplied, beyond that any additional gas would be given to power sector,” power minister Jyotiraditya Scindia told the media after the meeting.

The EGoM had already decided that it would come up with a solution for the crisis, without tampering the present priority ranking mechanism.  As per the current procedure, priority ranking is given in the pecking order of first existing gas-based urea plants, LPG units, power plants, city gas distribution projects and if remains for existing gas based power plants.

While about 7,818 mega watt of gas-based power plants are not operating due to scarcity of fuel, more than 16,000 MW is operating at a plant load factor (PLF) of just 23.7 per cent. According to the roadmap by petroleum minister M Veerappa Moily, it was looking to allotte gas from new fields of ONGC and GSPC for the 25 power plants that were lying idle, which were starving for gas due to the lower production from RIL’s KG-D6.  According to sources, about 6-10 million metric standard cubic feet per day (mmscmd) can be allotted for the power sector from ONGC and GSPC fields by 2016.

ONGC is set to start production from KG-DWN-98/2 block by 2016-17.  “This would be a huge boost for the sector. These fields have to make up for the shortfall in KG-D6, as RIL’s new discoveries may come up for production by 2018-19 only,” a senior petroleum ministry official had told Business Standard. ONGC has found 4.85 trillion cubic feet of gas reserves in nine gas discoveries in KG Basin.

The production from KG-D6 has dropped 77 per cent from 61 mmscmd in 2010 to about 14 mmscmd now. While there are claims that majority of these 25 power plants were not based on KG-D6 gas, the allocation to these power units from RIL block were supposed to be around 29.7 mmscmd. Moreover, around 8000 mega watt of new gas-based capacities are also waiting for gas allocation now. However, it is also blamed that these power plants were not set up based on the gas from KG-D6.