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Gas supply proposal for power plants may be discussed

Gas supply proposal for power plants may be discussed
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The proposal to give power plants the same priority as fertiliser plants for supply of domestic natural gas would be discussed in an upcoming meeting of the Empowered group of ministers (EGoM).

If the EGoM accords the same priority, existing and stranded plants would get natural gas to generate about 2,200 mw power.

In the current scheme of things, domestically produced gas is distributed to fertiliser plants on a priority basis.

Therefore, gas produced from KG-D6 is meeting only the needs of fertiliser sector and its supply to power plants has fallen to zero. The power ministry recently issued an advisory to developers not to plan any gas-based power plants till 2015-16 due to paucity of gas.

Power plants are unable to get gas because of the fall in output in D6 from 62 million standard cubic meters per day (mmscmd) three years ago to about 14.2 mmscmd.

The three options for gas produced from blocks auctioned under New Exploration Licensing Policy are: treat fertiliser and power sector customers equally; give equal priority to all core sector customers, including LPG and city gas; or maintain status quo.

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