New Delhi: The Oil Ministry has commanded Reliance Industries Ltd (RIL) to reroute part of gas allocated to Rashtriya Chemicals and Fertilizers (RCF) to private power plants in Andhra Pradesh under the gas swapping agreement.
Each day around 2.1 million standard cubic meters of gas from KG-D6 is routed to RCF’s Thal urea manufacturing plant. On 31st May, the ministry instructed RIL that a part of this gas would be transmitted to Hyderabad-based Bhagaynagar Gas Ltd (BGL) and power plants in Andhra Pradesh.
Acknowledging the scarce fuel, the urea manufacturing companies were given top priority. However, with the KG-D6 output falling below 15 million standard cubic metres per day, there is hardly any gas left after meeting this prerequisite. The shortage of gas has resulted many power plants in Andhra Pradesh to either shut down or operate sub-optimal capacities.
According to the sources close to the development, the decision was taken on the request made by GAIL for swapping of KG-D6 gas with imported LNG. The present shortfall is positive for GAIL as it can supply imported LNG to the RCF’s urea plant at Thal.
While BGL and power plants will pay the actual price of imported gas, RCF will pay only US $4.2 per million British thermal unit, the rate at which it had contracted KG-D6 gas.
The swapping of KG-D6 gas would take place once the BGL, Andhra power plants, GAIL, RIL, Reliance Gas Transportation Infrastructure Ltd and RCF Thal enter into commercial agreements.
Contact info :-
303, 3rd Floor, Hilton Centre, Sector – 11, CBD Belapur, Navi Mumbai – 400614
Tel : 91 22 41610808 Fax : 91 22 27577770
Email : [email protected]
Website : www.epcworld.in
Each day around 2.1 million standard cubic meters of gas from KG-D6 is routed to RCF’s Thal urea manufacturing plant. On 31st May, the ministry instructed RIL that a part of this gas would be transmitted to Hyderabad-based Bhagaynagar Gas Ltd (BGL) and power plants in Andhra Pradesh.
Acknowledging the scarce fuel, the urea manufacturing companies were given top priority. However, with the KG-D6 output falling below 15 million standard cubic metres per day, there is hardly any gas left after meeting this prerequisite. The shortage of gas has resulted many power plants in Andhra Pradesh to either shut down or operate sub-optimal capacities.
According to the sources close to the development, the decision was taken on the request made by GAIL for swapping of KG-D6 gas with imported LNG. The present shortfall is positive for GAIL as it can supply imported LNG to the RCF’s urea plant at Thal.
While BGL and power plants will pay the actual price of imported gas, RCF will pay only US $4.2 per million British thermal unit, the rate at which it had contracted KG-D6 gas.
The swapping of KG-D6 gas would take place once the BGL, Andhra power plants, GAIL, RIL, Reliance Gas Transportation Infrastructure Ltd and RCF Thal enter into commercial agreements.
Contact info :-
303, 3rd Floor, Hilton Centre, Sector – 11, CBD Belapur, Navi Mumbai – 400614
Tel : 91 22 41610808 Fax : 91 22 27577770
Email : [email protected]
Website : www.epcworld.in