Govt says no to fresh gas allocation from KG-D6

With production from Reliance Industries’ KG-D6 field stuck at 60 million standard cubic metres per day (mscmd), the government has decided not to make any fresh gas allocation from it.

Consequently, Anil Ambani-promoted Reliance Power will not get any extra gas for its four power plants, including the existing Samalkot power plant in Andhra Pradesh. Senior government officials said the minutes of the meeting of the empowered group of ministers (EGoM) on the New Exploration Licensing Policy had been finalised.

The EGoM had met on July 28 to review the production and allocation from KG-D6 field. “No new allocation has been made to any company, since the entire production of 60 mscmd is being consumed,” an official said.

The Anil Ambani group had sought 28 mscmd for four gas-based power projects, including Dadri in Uttar Pradesh, Shahapur in Maharashtra’s Raigarh district, Jambusar in Gujarat’s Bharuch and Samalkot in Andhra Pradesh. The EGoM also examined gas demand from companies like Lanco, GMR and Sravanthi Group that are scheduled to go on stream by 2011-12.

The EGoM decided that the fertiliser and power ministries would be informed about future gas availability for the two sectors. “The Ministry of Petroleum and Natural Gas will indicate the future gas availability to the Department of Fertiliser and Ministry of Power and invite their proposals for commercial utilisation of gas. Appropriate proposals will be put up before the EGoM,” Petroleum and Natural Gas Secretary S Sundareshan had told reporters after the July EGoM meet.