EGoM allocates bulk of extra gas from RIL to power units

An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee today allocated bulk of the additional natural gas from Reliance Industries' KG-D6 fields to power plants.

A ministerial group had earlier apportioned the initial 40 mmscmd output from KG-D6 fields to urea and power plants.

Today, the EGoM headed by Finance Minister Pranab Mukherjee fixed users for about 50 million cubic meters per day of gas, Petroleum Secretary R S Pandey told reporters.

Of the 50 mmscmd, 20 mmscmd would be allocated on firm basis while the balance on temporary or fallback basis till such time that RIL is confident of producing 90 mmscmd of gas on a sustained basis.

RIL has said production capacity from KG-D6 has far exceeded the initial output of 40 mmscmd, for which buyers have been tied-up, and had demanded naming additional customers to avoid irreversible damage to the field reservoirs.

Pandey said the EGoM did not discuss the issue of marketing margin for the gas allocated from KG-D6 today.