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JUL 23 2013

Ministerial meeting on gas postponed

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 23rd JUL 2013

The Ministerial panel meeting, which was to be held on Monday to consider making fuel available for gas-starved power units, was postponed.

The Empowered Group of Ministers, headed by Defence Minister A.K. Antony was put off following a bereavement in the family of the Minister of Petroleum and Natural Gas M. Veerappa Moily.

Sources said a new date for the meeting had not been decided.

Last week, the panel rejected a proposal to divert some of the 14 million standard cubic metres per day (mmscmd) of KG-D6 gas from the fertiliser plants to power units.

The fertiliser units, which manufacture urea, currently consume all the 14 mmscmd of gas produced from the Reliance Industries-operated East Coast block KG-D6. The panel was expected to discuss the methodology for making available gas to the power sector, both on a short-term and long-term basis.

With gas output at KG-D6 constantly declining and no other gas find getting commercial immediately, the panel was expected to consider whether all core sectors fertiliser, LPG, power and city gas distribution entities (for cooking and transport sector) should be accorded equal priority and re-distribute the available gas among them on a pro-rata basis based on the signed gas supply agreements.

The current output from D6 block is less than 15 mmscmd, which is not sufficient to meet even the core sector allocation made earlier.

While the Power Ministry has been making a strong case for considering gas-based power plants as a priority sector for gas allocation, the fertiliser industry had demanded that the status quo to be maintained. Fertiliser, currently, is a priority sector while there have been no supplies to the power sector since March.

Tags

Gas Veerappa Moily Natural Gas Petrol Petroleum Indus Empowered Group of Ministers Liquefied Petroleum Gas Power

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