Demand for gas from power, fertilizers to rise 28pc

By admin August 13, 2009 11:45 am IST

The Centre recently announced that demand for gas from power and fertilizer plants will go up by 28 per cent to 202.83 million cubic meters per day in three years. Minister of State for Petroleum & Natural Gas, Jitin Prasada, said demand from power plants will rise to 126.57 mmscmd by 2011-12 from 102.7 mmscmd during the current year. The same from fertilizer plants would rise to 76.26 mmscmd from 55.9 mmscmd in 2009-10.
 
To meet the growing deficit, an Empowered Group of Ministers had decided to allocate most of the initial 40 mmscmd output from Reliance Industries eastern offshore KG-D6 fields to urea plants and existing gas-based power plants.

 
Existing gas-based urea plants, getting gas below their full requirement, were allocated 15.33 mmscmd (at the rate of 8,200 net calorific value), he said, adding that a further 18 mmscmd gas was allocated to such plants lying idle or under-utilized and likely to be commissioned during FY’09.
 
“The Department of Fertilizer has contended that the gas in question has been allocated based on government’s authority and rights under the Production Sharing Contract aimed at regulating gas marketing and allowing their orderly growth,” said Prasada.