The Hindu Business Line : Gas shortage hits power units in K-G basin

THE CHAIRMAN and Managing Director of GAIL, Mr S.P. Rao, along with Mrs Rao and the Deputy General Manager, Mr Narendra Kumar, inaugurating the new administrative building in Rajahmundry on Thursday. - S. Rambabu

Rajahmundry , Sept 7

GAIL (India) has laid pipelines for four new power plants in the Krishna-Godavari basin, but is currently unable to supply gas as there is no supply from ONGC, according to Mr S.P Rao, Chairman and Managing Director.

At a press meet here on Thursday, after inaugurating the company's new administrative building, he said that gas availability in the basin was currently 6.2 million cubic metres a day against the actual allocation of 9.5 million cubic metres.

"We have invested nearly Rs 100 crore in laying pipelines to the new power projects — Konaseema, Vemgiri, GVK phase two and Gautami. There is no delay on our part. But ONGC has run into some problems in G-1 structure and is unable to supply the gas. Therefore, we are rationing the available gas to existing customers. No gas will be supplied to the new power units until gas production improves, according to the Government's directive," he said.

However, he said that GAIL was negotiating with Reliance and other producers in the basin to tide over the crisis. Currently there is demand for 15 million cubic metres a day in the K-G basin as against the availability of 6.4 million cubic metres. "As a whole, the same situation prevails in the country. We are supplying 76 million cubic metres a day against the demand for double the quantity. Reliance and others are reported to have found substantial gas reserves in the K-G basin. Once the gas starts flowing in, the situation may improve," he said.

He said GAIL operates 850 km of pipeline in the K-G basin and, as part of the national gas grid project, 1,700 km of pipeline would be added in Andhra Pradesh.

"Detailed surveys have been completed on all the routes and the proposed routes will connect the LNG sources from Dahej to Kakinada and to Kolkata," he said, adding that the Kakinada-Uran sector would be the most important.

He said that the GAIL gas pipeline system would be available to all, including private operators, on non-discriminatory basis for transporting gas from all available sources.

Mr Rao said that GAIL had laid LPG pipeline from Vizag to Secunderbad via Vijayawada (613 km) with a throughput capacity of 1.164 MMTPA.

"It is designed to be further augmented by pumping at Vijayawada, but at present the capacity is not used fully as HPCL is not able to supply the LPG. However, once the underground cavern project is completed at Vizag, the situation will improve," he added.

Mr Narendra Kumar, Deputy General Manager of the Rajahmundry office, was also present.

More Stories on : Power | Petroleum | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page