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Our Bureau

New Delhi, Nov. 25 Reliance Industries Ltd (RIL) will be able to meet about 20 per cent of its requirement of 11.80 mscmd of gas from its Krishna-Godavari Basin D-6 block. The Government has allocated 2.34 mscmd of D-6 gas to RIL.

Apart from RIL, Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Essar have also been allocated close to 20 per cent of their requirements, sources told Business Line.

Sources said that the allocation to refineries is in keeping with a decision of an empowered group of ministers to distribute additional production from D-6 block to the identified sectors, including refineries. While taking a decision on additional allocation the panel had decided to distribute 20 mscmd on firm basis and 30 mscmd on fall-back basis from the D-6 block.

The panel had decided to give 5 mscmd to the refineries on firm basis and an additional 6 mscmd on fall-back basis. The Government had earlier allocated gas to the priority sectors from the initial output of 40 mscmd from the block.

The five refiners — IOC, BPCL, HPCL, RIL, and Essar — had sought 25.20 mscmd of D6 gas. Against its requirement of 8.10 mscmd IOC has been allocated 1.60 mscmd, BPCL has been allocated 0.26 mscmd against the requirement of 1.30 mscmd, HPCL has been given 0.20 mscmd against its requirement of 1 mscmd, and Essar has got 0.60 mscmd against the requirement of 3 mscmd. Sources said that these allocations have been made only for the firm basis.

RIL has also been allocated 1.918 mscmd gas from D-6 for its petrochemical plants. For its refineries RIL has been buying imported liquefied natural gas at 60 per cent premium to the price of gas from its own block.

The Government has asked IOC to communicate unit-wise requirement for its refineries in Mathura, Gujarat and Panipat, sources added.

Of the 20 mscmd on firm basis, 13 mscmd has been allocated to power plants. The new customers notified to RIL include NTPC, which has been given 2.71 mscmd. Other power plants that have been allocated D6 gas include Lanco’s Kondapalli Extn in Andhra Pradesh (1.46 mscmd), Rithala (0.40 mscmd) and Bawana plants (0.93 mscmd) in Delhi, Uran plant in Maharastra (1.40 mscmd).

More Stories on : Outlook | Petroleum | Reliance Industries Ltd

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