Gas production at RIL's KG-D6 stands at 14 mmscmd: Oil Secy

Says there are 3 proposals status quo, divide the gas produced equally between fertiliser and power or distribute among priority sector

The gas production at Reliance Industries' KG-D6 block is 14 million standard cubic metres per day (mmscmd), an official said today.

"Gas production at RIL's KG D6 is 14 mmscmd," Oil Secretary Vivek Rae told reporters here.

On asked about the proposals before the EGoM today he said there are three proposals.

Rae said the three proposals are status quo, divide the gas produced equally between fertiliser and power or distribute among priority sector, first fertiliser then LPG and power followed by city gas.

An Empowered Group of Ministers (EGoM) headed by Defence Minister A K Antony is to consider an Oil Ministry proposal of abolishing the priority ranking later in the day, according to which natural gas is first given to urea manufacturing fertiliser plants, then to LPG units, followed by power plants, city gas, steel and refineries.

The current priority ranking meant when output from Reliance Industries' eastern offshore KG-D6 fields started falling in 2011, supplies to refineries was cut first, then steel and city gas sectors.

From November 2011, supplies to 25 power plants, which had signed for 29.74 mmscmd of KG-D6 gas, were pro-rata cut and this year completely stopped as KG-D6 output kept falling.

From June 1, supplies to LPG plants, which had contracted 2.59 mmscmd of KG-D6 gas, too, has stopped as current production of just over 14 mmscmd was sufficient to meet the full requirement of the fertiliser sector only.