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Richa Mishra

New Delhi, Oct. 24Ratnagiri Gas and Power Pvt Ltd (RGPPL), the erstwhile Dabhol project, will get a share of gas produced from Reliance Industries Ltd’s (RIL) Krishna Godavari basin fields.

The Empowered Group of Ministers (EGoM) on Gas Pricing and Utilisation, which met on Thursday, has decided that out of the initial production from RIL’s fields, RGPPL will get 1.5 million standard cubic metres per day (mscmd). Sources told Business Line, “RGPPL will get 1.5 mscmd from January and once the production from the fields is ramped up, the power project will get 2.7 mscmd”.

Indications are that the production from RIL’s fields in KG Basin will be around 25 mscmd from April.

“The balance gas requirement for RGPPL will be met through R-LNG up to September 2009, by when RIL production is expected to go up further”, sources said.

Apart from allocation to RGPPL, the EGoM had also considered the request of the Andhra Pradesh Government and requirements for Dadri power project.

While on the issue of gas for Dadri power project of Anil Ambani Group company, the EGoM did deliberate but refrained from taking a view as the matter is under litigation and the plant is yet to come up.

On allocation of gas for captive power plants, it was felt that the matter should be dealt separately.

“The EGoM has asked the Ministries of Power and Petroleum to work out the requirement for captive power projects and get back,” sources added.

The Andhra Pradesh Government has been seeking allocation of 8.93 mscmd from the first supplies of gas by RIL to meet the requirements of the existing power projects.

The EGoM had in its earlier meeting allocated 18 mscmd from the first phase of projected 40 mscmd of RIL gas to the exiting power projects, and 22 mscmd to fertiliser and city gas projects.

As regards pricing of gas, the EGoM felt that the price has already been decided in the September 2007 meeting, and is valid for five years for all gas sales.

The EGoM had decided the gas price of $4.20 per mBtu at delivery point.

RIL is to begin production of gas from its D6 field in January 2009 and would ramp it up to 40 mscmd by the year-end.

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