IOC wants 23 mscmd of Krishna-Godavari gas
16 Nov 2009
State-run Indian Oil Corp has sought around 23 mscmd of gas from the Krishna-Godavari Basin D6 block operated by Reliance Industries (RIL), business channel CNBC-TV18 reported.
B M Bansal, IOC's director (planning and business development), said, ''The petroleum ministry had asked all the refineries to submit their gas requirements. Our requirement in next three years is expected to be around 23 mscmd, which we have communicated to the ministry.''
The refineries require gas for their operations. Earlier, refineries were using diesel, furnace oil, and naphtha, but now they are shifting to gas which is cleaner and more efficient.
Bansal said, ''We can take the said quantum once all our refineries are connected to pipeline network. At present, we can take gas at our Mathura and Gujarat refineries.'' While the Panipat refinery will be connected in next three-four months, infrastructure is not ready for Haldia, Barauni, and Guwahati refineries, he added.
Currently, IOC sources gas from GAIL (India) and re-gassified liquefied natural gas (R-LNG) from Petronet LNG. IOC 2 mscmd of gas at Mathura and Gujarat, but once all the refineries are connected the requirement is expected to go up significantly.
RIL is producing around 45 mscmd of gas from its D6 block. After allocating gas according to the gas utilisation policy from the initial output of 40 mscmd from the block to the priority sectors (power, fertiliser, steel, city gas distribution, and gas-based LPG plants), an empowered group of ministers (EGoM) in October allocated additional 50 mscmd gas (20 mscmd is on firm basis and 30 on fallback).
Additional allocation will enable RIL to ramp up its production. The fall-back allocation refers to the quantum which the operator would be able to produce over and above its sustained output level. RIL is expected to reach 60 mscmd by December. Of the 20 mscmd gas allocated on firm basis, two-third of produce has been given to power plants. Apart from them petrochemical plant (RIL's plant has got 1.918 mscmd) as well as some refineries will get the gas.