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October 3, 2012

Power Plants should be given at par priority for gas allocation with fertilizer plants…

Gas Pipeline

Power India found that the MoP (Ministry of Power) has requested that the gas based power plants should be given the at par preferences for allocations of natural gas with that of fertilizer plants. According to MoP, this should be due to the fact that import of power is not possible as is the case with urea.

 

As with the current priorities are concerned with respect to allocation of natural gas to various industries, fertilizer plants get top most priority followed b LPG extraction units; gas based power plants comes third in the priority list.

 

Due to this reason, when RIL’s (Reliance Industries Limited) KG-D6 field production fall then the expected level, all the available gas was first utilized for the meeting the fertilizer plant’s requirements and thereafter the requirements of LPG plants was met. Only leftover gas was distributed among the power plants on a pro-rata basis, resulting in sharp dip in electricity generation.

 

Following statistics may enlighten the above:

  • KG-D6 output dipping to 27.5 million standard cubic meters per day (mmscmd) instead of rising to projected 80 mmscmd,
  • Entire 15.668 mmscmd allocations to 16 fertiliser plants were met first (from the anove 27.5 mmscmd.)
  • LPG manufacturing plants got 2.6 mmscmd as required
  • Balance 9.3 mmscmd distributed among 25 power plants (the actual allocations/requirement was 28.9 mmscmd)
  • Hence, only 30% requirement of gas plants were met while 100% requirement of fertilizer and LPG manufacturing plants were met.

 

Due to the above cited reasons, the Hon’ble Power MInister M Veerappa Moil has told in an interview that "There is a need of re-prioritisation of gas. Fertiliser can be imported but power cannot be imported. An equal status for power plants can be considered as we give to fertilizer,"

 


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