Financial Daily from THE HINDU group of publications
Wednesday, May 31, 2006
Financial Daily from THE HINDU group of publications Wednesday, May 31, 2006 |
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Corporate
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Announcements Industry & Economy - Power REL seeks to ensure gas supply from KG Basin Richa Mishra
New Delhi , May 30 Reliance Energy Ltd (REL), an Anil Ambani Group company, has knocked at the doors of the Petroleum Ministry to ask GAIL (India) Ltd to ensure availability of gas from KG Basin for its power station. The company, according to sources, has requested the Ministry to ask GAIL to treat its `fall back' allocation of gas from KG Basin as `firm' allocation in order to avert any adverse impact on its power plant in the region. In view of the present gas shortage in KG Basin, supplies to power plants were being made on pro-rata basis to their firm allocation. Since REL's firm allocation by itself is less, the company's Samalkot combine cycle power plant in Andhra Pradesh is being adversely affected compared to other plants in the region, REL said in a letter to the Petroleum Minister, Mr Murli Deora. The other power plants' firm allocation is more than their minimum requirement.
Gas supply
Under the fall back allocation, the gas marketing company shares the spare production available after meeting the firm allocations requirements of the consumers. REL has said in its letter that GAIL could be advised to treat its 0.36 million standard cubic metre per day (MMSCMD) fall back allocation as firm allocation and ensure that the gas supply to the company's plant is maintained at about 0.55 MMSCMD to avoid shut down of the 220 MW combined cycle power plant.
Gas allocation
According to REL, GAIL has informed that the tentative gas allocation is about 0.459 MMSCMD for the period May 12-24, 2006 and 0.433 MMSCMD for the period May 25-31, 2006. This falls short of the minimum requirement of 0.55 MMSCMD and the Samalkot plant may have to be shut down. The conversion of fall back allocation of 0.366 MMSCMD of Samalkot plant into firm allocation would improve the pro rata gas supply to the station and enable it to continue to operate in the combined cycle model. However, according to sources, the actual supply of gas by GAIL to REL during the above two periods has been 0.5167 MMSCMD and 0.5713 MMSCMD, respectively.
More Stories on : Announcements | Power | Petroleum | GAIL (India) Ltd | Reliance Energy Ltd
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