08 April 2011

Reliance gas output falls?

Power Ministry has expressed concern over the fall in natural gas production at Reliance Industries’ eastern offshore KG-D6 fields as the shortfall may hit electricity generation this summer.

Earlier this week, the ministry had written to the Oil Ministry pointing out that power plants are getting less than allocated gas from KG-D6.

“The short supply of gas by Reliance to the power projects is a matter of great concern mainly due to the huge requirement of electricity during summer season,” it said.

Natural gas production from KG-D6 has fallen to 47.5 million standard cubic meters per day from 61.5 mmscmd output the block had achieved in March 2010. This fall has led to Reliance making a pro-rata cut in supplies of all its customers.

The power ministry said only 24.5 mmscmd of gas was supplied to power plants in February as against allocation of 33 mmscmd on firm as well as fall back basis.

The short supply, it said, may be “construed as non compliance of the decision of the EGoM.”

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