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| Fertiliser units seek assured gas supply after RNRL verdict |
| Press Trust of India / New Delhi Jun 24, 2009, 16:06 IST |
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Industry fears HC ruling granting Anil Ambani firm 28 million standard cubic metres could hamper supply to fertiliser plants
The fertiliser industry, which was granted the first right over gas from Reliance Industries' D6 fields, today voiced concern over Anil Ambani-run RNRL getting the maximum gas allocation after the Bombay High Court order and sought firm assurance on uninterrupted supplies.
Fifteen urea-manufacturing plants were allocated the first 14.97 million standard cubic metres of output per day from D6 in the government's natural gas utilisation policy.
"The industry is concerned after the judgment of the Bombay High Court according to which Reliance Natural Resources Ltd (RNRL) is to get 28 mmscmd of gas from the KG Basin," Fertiliser Association of India (FAI) Director General Satish Chander said in a letter to Fertiliser Secretary Atul Chaturvedi.
After fertiliser, power plants were allocated 18 mmscmd of gas from D6. RIL currently produces about 28 mmscmd, which would reach the planned 40 mmscmd initial output in July.
"We hope that it will not affect the supply of gas from the KG Basin to the fertiliser industry. A reconfirmation from the government in this regard will remove the uncertainty in supply of feedstock to the fertiliser industry," he said.
The FAI projects another 12.7 mmscmd gas requirement for fertiliser plants that are currently using fuel oil or naphtha as feedstock.
The FAI said the fertiliser industry is also using the administered price gas from ONGC and imported LNG.
"Any shortfall in the availability of gas from ONGC and joint ventures under the APM in future will have to be made up by allocation of additional quantities of gas," it said.
Explaining further the rationale behind seeking a reconfirmation from the government, the industry said some units that are using fuel-oil or naphtha as feed stocks have invested heavily to convert into gas-based plants, as encouraged by the Centre through its policies, may face difficulty.
Moreover, some of the fertiliser units have lined up expansion plans and any disruption in gas supply may play spoilsport for them, it said.
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