STOCK MARKET BSE NSE

Fall in KG gas haunts power plants in Jaipal's home state

Published: 08th August 2012 09:48 AM  |   Last Updated: 08th August 2012 09:48 AM   |  A+A-

Gas shortage has hit power plants in Oil Minister Jaipal Reddy’s home state Andhra Pradesh. Power production to the tune of nearly 400 mega watt has been affected as gas-fired plants are receiving far less gas than what was promised to these power plants.

Reliance Industries’ (RIL) KG-D6 gas field’s output has dropped to 29 million units as against a planned 80 million units leading to short supply of gas-run power stations in Andhra Pradesh.

“There is severe shortage in availability of gas in KG basin.  RIL’s said field was to produce 80 million standard cubic meters per day (MMSMCD) in the current year. But it is producing merely 29 MMSCMD,” Reddy told reporters on Tuesday.

Reddy said, AP has been most hit as short supply of gas to gas-based power plants has led to severe drop in power generation.

The situation has aggravated further as hydel power plants are also running below capacity due to poor  rainfall, while thermal plants are producing less for want of coal.

Things have been made worse as the government has decided to cut gas supplies to fuel-starved power plants across the country so that requirement of one power station at Dabhol in Maharashtra is met to the full.

The Oil Ministry had last week ordered RIL to use the dwindling KG-D6 gas to first meet full requirement of Dabhol power plant in Maharashtra and supply any remaining output among the 24 other power plants. However, that never happened as output from the KG-D6 fields touched an all-time low.

“That decision,” Reddy said, “was taken by an Empowered Group of Ministers (EGoM) in 2008. I will consult all other ministries to see what can be done,” he said.

Power plants currently get about 12 MMSCMD of gas from KG-D6. They would be left with hardly 4 MMSCMD after 7.6 MMSCMD is first supplied to Dahbol plant as per the ministry order.

Meanwhile, Reliance and BP plc on Tuesday won approval for over $1 billion expenditure in the flagging KG-D6 gas block but were ordered to drill more wells at their own cost before three gas finds can be declared viable.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp