In a big relief to small and medium units using natural gas supplied from isolated wells in the Krishna-Godavari Basin (KGB) region, the Union Ministry of Petroleum and Natural Gas has tweaked the norms that will enable them to secure their gas supplies.

New supplies

In an order passed recently, the MOPNG has brought about changes to the earlier orders and has decided to provide new supplies to these units at a price that will be determined after securing no objection certificates and calling bids through an open competitive bidding process. This order was passed on April 1.

Earlier the order read, “In case of additional availability of gas after providing for gas supplies to the existing customers. This would be for any new production from the small and isolated fields; supply of gas will be decided through open competitive bidding.” The KG Basin Isolated Wells Consumers Association sees this as major relief for them as they now will be able to access the gas from these wells following the new order which brings about certain changes.

Earlier, after an order passed by the MoPNG in December 2014, ONGC had proposed to stop gas supplies to the existing small consumers on expiry of the current contracts and re-tender the isolated fields calling for fresh bids.

Norms tweaked

The small and medium industrial consumers were at risk of closure as they could not afford costly alternative fuel options. Therefore, they had taken up the issue with the MoPNG, which has tweaked the norms that will benefit these units, as they will continue to get supplies after completion of due process.

There could not have been better news for these units during the new financial year, a spokesperson of the association told BusinessLine.

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