Gas demand from power, fertiliser plants to rise 28% in 3 yrs

The government today said demand for gas from power and fertiliser plants will rise by 28 per cent to 202.83 million metric standard cubic meters per day (mmscmd) in three years.

In a written reply to a question in the Lok Sabha, Minister of State for Petroleum and Natural Gas Jitin Prasada said demand from power plants will rise to 126.57 mmscmd by 2011-12 from 102.7 mmscmd during the current year.

The same from fertiliser plants would rise to 76.26 mmscmd from 55.9 mmscmd in 2009-10.

To meet the growing deficit, an Empowered Group of Ministers had decided to allocate most of the initial 40 mmscmd output from Reliance Industries eastern offshore KG-D6 fields to urea plants and existing gas-based power plants.

Existing gas-based urea plants, getting gas below their full requirement, were allocated 15.33 mmscmd (at the rate of 8,200 Net Calorific Value), he said, adding that a further 18 mmscmd of gas was allocated to such plants lying idle/ under-utilised and likely to be commissioned during FY'09.

To a separate question, Prasada said the Fertiliser Department had raised an alarm over the Bombay High Court ruling asking RIL to supply 28 mmscmd of KG-D6 gas to RNRL.

"The Department of Fertiliser has contended that the gas in question has been allocated based on Government's authority and rights under the Production Sharing Contract aimed at regulating gas marketing and allowing their orderly growth," he said.