Declining KG-D6 output impacts power production
Gas production from the KG-D6 block, operated by Reliance Industries Ltd, has come down to 29 million standard cubic meters per day (mscmd) from the 80 mscmd it was supposed to produce, oil minister Jaipal Reddy has said, and this shortfall is impacting power production, especially in Andhra Pradesh.
"There is severe shortage in availability of gas in the case of KG basin. KG basin was to produce 80 mmsmcd in the current year. As against 80 msmcd, it is producing only 29 mscmd," Mr. Reddy said.
Despite falling production, the field continues to supply the full allocated quantity to the fertilizer sector, a first-priority sector. For the power sector, which is the third on the priority list, the government has applied a pro-rata cut in gas supplies. However, the requirement of the Dabhol (Ratnagiri) power plant in Maharashtra is met to the full.
The petroleum ministry had ordered to first meet the full requirement of the Dabhol power plant in Maharashtra and supply any remaining output among the 24 other power plants. Mr. Reddy said that the decision to give first priority to the Dabhol power plant along with the fertilizer sector was taken by an empowered group of ministers (EGoM) in 2008. Mr. Reddy further said: "I will consult all other ministries to see what can be done."
Power plants currently get about 12 mscmd of gas from KG-D6. They would be left with hardly 4 mscmd after 7.6 mmcmd is first supplied to Dahbol plant as per the ministry’s order.
Once Dabhol starts getting gas, supplies to power plants in Andhra Pradesh will reduce by 2 mscmd, and will affect the generation of as much as 400 MW of power.
The oil minister's home state is Andhra Pradesh and the minister says his home state, despite being the producer state, has been hit the most.
Reddy said that the fall in gas supplies has added to the problem of power production in Andhra Pradesh, adding that the drop in electricity generation at hydel plants due to a weak monsoon are also adding to the problem.