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MAR 16 2015

Fertiliser Ministry allows swapping of KG gas supplied to RCF units with R-LNG

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 16th MAR 2015

The Fertiliser Ministry has allowed swapping of natural gas from the KG-D6 reserve being supplied to Rashtriya Chemicals and Fertilizers (RCF) units located in Maharashtra with regasified liquefied natural gas (R-LNG), thereby facilitating an additional supply of 2.2 mscmd to Andhra Pradesh and Telangana, according to an official release.

With the approval, around 450 MW can be generated by gas — independent power producers (IPPs) in Telangana getting 242 MW and Andhra Pradesh 208 MW, the release said.

The IPPs located in the two States have pipeline connectivity with RGTIL’s East-West pipelines.

Currently, operational R-LNG terminals are located on the western coast.

“Even though East-West pipeline of RGTIL provides physical connectivity to eastern part but as communicated by RGTIL, it is not possible for R-LNG to flow from western parts of India to AP.

“Therefore, direct R-LNG supply to customers in AP and Telangana is not possible and can only be achieved through swapping of gas,” said the statement.

GAIL (India) will enter into contractual arrangements with RCF, RGTIL and IPPs located in the two States for the supply of R-LNG which “will help in mitigating the power shortage in Telangana which would benefit the farmers having 18.62 lakh pump sets in saving rabi crops” and unscheduled power cuts in both States could also be minimised.

Tags

DIRECT Maharashtra Andhra Pradesh Telangana Independent Power Producers Gas Natural Gas Liquefied natural gas Power Power shortage India

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