While the ministry of petroleum and natural gas is preparing a list of more allottees for Reliance Industries Ltd’s D6 gas to the empowered group of ministers (EGoM), the fertiliser ministry has laid claim to another 43.37 million metric standard cubic metres a day (mmscmd), to enable conversion of all existing non-gas based fertiliser unit to gas, revival of closed units and expansion of existing projects. The gas requirement has been specified for use by 2012-13.

This is a sequel to Union power secretary H S Brahma sending a list of power plants that require gas. The power ministry has sought allocation of an additional 40 mmscmd for 8,000 Mw of gas-based plants which includes new projects. RIL currently produces about 40 mmscmd of D6 gas and is ready to raise it by another 40 mmscmd. All gas allocation is decided by the government.

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Arguing for a need to bring uniformity in gas prices, Chaturvedi has said the existing fuel/feedstock differential between various fertiliser units due to the varying prices of APM gas, imported regassified LNG, other joint venture gas and RIL gas is a major cause of inequity among these units, especially since the government was moving towards a nutrient-based subsidy system.

The fertiliser secretary has also raised the issue of vast differential in transportation rates being levied by RIL. “The transportation tariff of natural gas from KG D6 to any plant beyond Jagdishpur on the HVJ pipeline is expected to be more than $3 mBtu, as compared to a transportation charge of less than $1 per mBtu for units in and around Kakinada,” said Chaturvedi in his letter.

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