Low gas output hits supply

Consumers of natural gas from Reliance Industries’ D6 field are facing a pro-rata cut as production has declined to 50.5 mmscmd (million standard cubic meter per day) due to some technical problems in the KG-D6 block, but if output dips further, the government may step in to re-allocate gas in favour of high-priority sectors such as fertilisers and power. Consumers in priority sectors have faced a fuel supply shortfall between eight to 13 per cent in the last three months. The empowered panel has accorded a firm allocation of 15.708 mmscmd KG-gas to fertiliser sector, the number one priority. But the sector is getting a supply of about 13 mmscmd. The number two priority, the existing gas-based liquefied petroleum gas (LPG) plants are also getting proportional eight to 13 per cent cut against a total fuel allocation of 2.594 mmscmd. And Power sector, the third in the priority list, is getting about 25-26 mmscmd gas against an allocation of 32.677 mmscmd.