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
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Tag: plants
Govt to decide on diverting gas to power sector
Government would decide on whether to increase the supply of natural gas to power sector by diverting a part of the existing supply to fertiliser sector. Fertiliser plants in India get 43.6 mscmd of natural gas at present. Of this, 19.5 per cent (8.5 mscmd) comes from imported liquefied natural gas (LNG). Some reports indicate that the fertiliser plants may have to import 45-50 per cent of their total gas
Govt to release shale gas policy soon
With the government initiating pricing reform in the natural gas sector, it plans to release the shale gas policy shortly and auction blocks for producing the unconventional fuel, media reports indicate. Also, the government will launch tenth bidding round for oil and gas blocks under new policy, media reports suggest. As part of its overall economic reform initiative, the government the government recently raised the price of domestic natural gas to $8.4 per unit from the present price
Impact of gas price hike on other sectors
According to some estimate, an increase in the price of natural gas by $1 would result in fertiliser plants taking a hit of Rs 3,155 crore per annum for producing 23 million tonne (mn t) of urea in 2013-14 and Rs 4,144 crore a year for 32 mn t from 2017-18. As for the power sector, the the impact of every dollar increase in the price of natural gas would be about Rs 10,040 crore per annum for generating 28,000 mega watts power
EGoM to discuss oil ministry proposal
The Empowered Group of Ministers (EGoM) would soon discuss the note circulated by the petroleum ministry on allocation of natural gas. According to the note, the petroleum ministry wants to discontinue the practice of giving priority to urea