OilMin to meet non-core users of KG-D6 gas tomorrow

The Oil Ministry has called a meeting of non-core users, whose supplies of natural gas from eastern offshore KG-D6 fields of Reliance Industries has been cut, tomorrow.

"The ministry will hear the affected/interested parties on May 11. All affected/interested parties are invited to attend," an official statement said here.

The ministry had on March 30 directed Reliance to supply natural gas from its KG-D6 fields to fertiliser, LPG, power and city gas sectors first before giving the fuel to sectors like steel, refineries and petrochemicals.

The order followed drop in production at KG-D6 fields to less than 50 million standard cubic metres per day (mmscmd) while Reliance had signed firm contracts for 57.15 mmscmd and needs another 1 mmscmd for the East-West pipeline that ferries the gas.

Any gas left after meeting core sector's 47.6 mmscmd of contracted demand would go to users in steel, refineries and petrochemical sector.

The ministry's decision to prioritise KG-D6 gas was challenged by Ispat Industries and Welspun Maxsteel in the Bombay High Court.

The Bombay High Court on May 9 directed the oil ministry to "give the petitioners an opportunity to present their cases and subsequently, take a decision. In addition, it was also directed that other affected parties may also be given a similar opportunity", the statement said.

"In compliance of the direction of the Bombay High Court, Joint Secretary (Marketing) in (Oil) Ministry will hear the affected/interested parties on May 11," it added.