Deora for reconstituting EGoM for allocation of RIL gas

The EGoM is also likely to decide on the allocation of 4.73 mmscmd of gas to five power plants, as requested by the Union power ministry

Not willing to take chances, the Union petroleum ministry has sought a revival of the Empowered Group of Ministers (EGoM) on the allocation of gas from the Reliance Industries Ltd- (RIL) operated KG-D6 fields beyond 40 million metric standard cubic metres a day (mmscmd).

“There is a need to revive the earlier constituted EGoM that was formed for allocation of gas up to 40 mmscmd from RIL’s D6 block in the K-G Basin,” Petroleum Minister Murli Deora said today. A formal request has been made to the Cabinet Secretary in this regard.

Petroleum Secretary R S Pandey added that one would expect it (EGoM) to be revived very shortly. He said that 36 mmscmd of D6 gas was being produced and consumed currently. “There are several stake-holding ministries. Therefore, it would be appropriate to allocate gas in consultation with the concerned ministries,” Pandey said.

RIL’s K-G basin, which started pumping gas in April this year, is currently producing around 36 mmscmd of gas. By December, gas production is estimated to go up to 80 mmscmd. The peak output from the block is estimated at 120 mmscmd.

RIL had also made a request to the government to make more allocations so that it can ramp up production. The EGoM is also likely to decide on the allocation of 4.73 mmscmd of gas to five power plants, as requested by the Union Ministry of Power.

The government, on the basis of the gas utilisation policy, and through an EGoM constituted in this regard, had earlier made an allocation of the initial 40 mmscmd of K-G basin gas to various sectors. Accordingly, 15 mmscmd of gas was earmarked for the existing fertiliser plants, 18 mmscmd to existing power plants, 3 mmscmd to existing LPG plants and the remaining 5 mmscmd for city gas distribution projects.

The government has also fixed a price of $4.2 per million British thermal unit (mBtu) for a five-year period, beginning April 2009. This EGoM, headed by the then external affairs minister Pranab Mukherjee, had ceased to exist due to the general elections held in May this year. On being asked if the EGoM would also look into the pricing of gas, Pandey said that the price had already been fixed and “none of the customers have complained about the price”.