The Hindu Business Line : KG basin gas may help fire up AP power projects

With the Ministry of Petroleum and Natural Gas taking a decision on pricing and commercial utilisation of natural gas from the Reliance’s Krishna Godavari basin fields, about 2,000 MW of additional power generation capacity is likely to be added once the gas is evacuated and streamed through pipeline grid.

While the exact date of production of gas is not clear, according to indications from company sources, trial production is likely in January and set to peak at 40 million standard cubic metres per day (mscmd) by March.

This could come as a major boost for Andhra Pradesh as it is bracing up for higher energy demand in the rabi season through to next summer, when the demand-supply mismatch is set to widen. It is actively considering power generation using naphtha.

Asked to comment on the development, the Advisor, Economic Affairs, Andhra Pradesh Government, Mr D.A. Somayajulu, told Business Line “ the gas pricing, a matter of concern all these days has been determined by the empowered group of ministers at $4.2 mmbtu (for crude price greater or equal to $60 per barrel), we believe it could have come down further”.“However, since the Central Government has decided both on pricing and major beneficiaries, including Ratnagiri Power, fertiliser units and other gas projects, it is for all of us to abide by its decision,” he said.

Vemagiri with a generation capacity of 370 MW, GVK Jegurupadu Extension (220 MW), Gauthami (464 MW), Konaseeema (445 MW) and Reliance Energy Projects, which have been completed but are unable to be functional, will be the principal beneficiaries.

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More Stories on : Power | Petroleum | Andhra Pradesh

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