Efforts to utilise the idle capacity by swapping regasified liquefied natural gas (RLNG) with natural gas to partly meet the power demand of industry and other consumers in the state have been stuck midway as Reliance Industries (RIL) has cited technical issues in transportation of gas.
The Union petroleum ministry had approved a plan for diverting 2.5 mmscmd of natural gas from the K-G Basin to gas power projects in Andhra Pradesh by arranging a similar quantity of RLNG to the consumers of western coast in a swapping deal as proposed by the state government.
“RIL has conveyed its inability to handle the swapping stating that there would not be enough pressure in its trunk line to pump natural gas to the west coast if a portion of it is diverted for local consumption,” said a senior official of the state power utility.
Natural gas output in RIL-operated KG D6 wells has fallen to about 36 mmscmd. Of this, 10 mmscmd of gas goes to local power producers and about 25 mmscmd is transported through its pipeline to Gujarat. The quantity that is being transported now is just one fourth of what the 48-inch pipeline can handle and the company needs to use more compressors in case there is a further fall in pressure to pump the gas from here, according to industry sources.
The state government now has to either convince the company to come to its rescue or shelve the plan, the sources say.
The additionally contracted 2.5 mmscmd of gas can help generate 500 Mw in the state to meet the peak load, which is expected to rise in the coming days.
Meanwhile, APTransco in a press release said: “The principal secretary, energy department, has reviewed the arrangements for supply of RLNG to the existing IPPs (independent power producers). It was informed that the proposal has been approved by the Ministry of Petroleum and Natural Gas and the necessary agreements have to be signed between RIL and GAIL for which discussions are going-on.”
The state has nine gas power projects with a combined installed capacity of 2,772 Mw. Of this, only 1,500 Mw is being utilised owing to the decline in natural gas supply. The four state-owned discoms currently supply 252 million units (mu) as against a total demand of 297 mu, according to the official information.
The AP Transco had provided open access facility to some of the HT consumers, who have been able to procure only base load power at rates as high as Rs 7 per unit as against Rs 3.50-4 per unit charged by the discoms. “Right now peak load power is as expensive as Rs 15 per unit and is also unavailable to individual consumers like industries,” a senior energy department official said.
