Business OpportunitiesRIL refineries to get one-fifth of gas from KG-D6
Reliance Industries (RIL) has been allocated 2.34 million standard cubic meters per day (mmscmd) of gas from its KG D-6 fields to meet just about one-fifth of the gas requirement at its twin refineries at Jamnagar in Gujarat.
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RIL had sought 11.80 mmscmd of KG D-6 gas to meet feedstock requirement at its twin refineries but it got only 2.34 mmscmd.
An Empowered Group of Ministers (EGoM) had on October 27 allocated one-fourth of the additional 20 mmscmd gas that RIL is ready to produce from KG-D6 to refineries.
"Refineries had projected a demand of 25.20 mmscmd but since the EGoM allocated only 5 mmscmd, the same has been allocated on pro-rata basis," an Oil Ministry official said.
State-run Indian Oil got 1.6 mmscmd while HPCL and BPCL have been allocated 0.26 and 0.20 mmscmd, respectively. Private sector Essar Oil would get 0.60 mmscmd against a demand of 3 mmscmd for use at its Vadinar unit in Gujarat.
RIL, which had so far not been allocated any gas from KG D-6, is currently buying imported liquefied natural gas at 60 per cent premium to the price of gas from its own block in the Krishna-Godavari Basin.
Of the 20 mmscmd, 12.9 mmscmd has gone to power plants, the official said, adding the new customers notified to RIL include state-run NTPC who has been given 2.71 mmscmd.
The government had previously fixed users for the first 40 mmscmd output from KG-D6 fields which has transformed the electricity scenario and boosted growth. Of the initial output, 18 mmscmd had gone to power plants.