GAIL plant does not receive gas from KG-D6

Liquefied Petroleum Gas (LPG) plants of GAIL has reportedly stopped receiving natural gas from Reliance Industries’ KG-D6 block because of falling output in the area.

Supply to the plant was stopped because gas output at KG-D6 declined to just over 14 mmscmd which is enough to met the requirement of fertiliser plants. Fertiliser plants are given top priority in gas supplies.

For production of cooking gas (LPG), GAIL was allocated 2.59 million standard cubic metre per day of gas from KG-D6.

The government had given fertiliser top priority in allocation and supply of KG-D6 gas. After fertiliser, LPG units was given second top most priority, followed by power, steel, refineries and petrochemicals in that order.

Already, non-core sectors of steel, refineries and petrochemicals have stopped receiving gas from the KG-D6 block.

Since early May, none of the 25 power plants that were allocated gas from KG-D6 fields, received any supplies, reports suggest.

Of the current output 14.2 mmscmd is being consumed by the urea-manufacturing fertiliser plants and a small quantity is being used to fire the East-West pipeline that transports the fuel from its landfall point at Kakinada in Andhra Pradesh to Baruch in Gujarat.