The Hindu Business Line : Gas flow from Reliance to NTPC expected from June 2008

THE Director General of Hydrocarbons (DGH), Mr V.K. Sibal, has said that Reliance Industries Ltd (RIL) might start gas supplies to NTPC Ltd from the Krishna-Godavari Basin from June 2008.

Addressing the Fifth Annual Conference on Gas in India, Mr Sibal said, "The expectation are that gas would flow from Reliance to NTPC by June 2008."

The Petroleum and Natural Gas Ministry had recently asked the Directorate General of Hydrocarbons to examine the reasons cited by Reliance for the delay. The DGH has been constantly reviewing the progress on the Krishna-Godavari Basin gas project.

Under normal circumstances, it takes six years from the date of the gas find to start production, said Mr Sibal, adding that therefore the project was not inordinately delayed. Reliance announced its Krishna-Godavari Basin gas find in 2002.

Reliance emerged as the cheapest bidder in 2004 to supply gas to NTPC's Kawas and Gandhar power stations. Supplies were originally scheduled to start in 2007. However, the schedule is delayed due to the non-availability of rigs and consultants.

On the demand for natural gas, the DGH said the future requirement of natural gas in 2010 stood at 65 billion cubic metres. It plays a very important role for the energy sector. The demand for natural gas is driven by the power and fertiliser sectors. These sectors account for 37 per cent and 35 per cent of the natural gas demand respectively, he said. Natural gas accounts for 8 per cent of current energy consumption and it is expected grow to 20 per cent by 2025.

Regarding a regulator for the petroleum sector, the DGH said the Government would put in place a regulator by the end of this calendar year. The Bill for this purpose is likely to be introduced during the winter session of Parliament. The Bill proposes to set up a regulatory mechanism to monitor upstream oil and gas activities.

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