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Oil Ministry plans to divert non-priority gas to power plants

By Religare

In a bid to generate 240-480 mw electricity to meet the demand, the Oil Ministry has planned to divert some natural gas from non-priority consumers to fuel-starved power units, said Economic Times.

The power plants that would immediately generate 240-480 mw electricity is expected to generate about 2,400 mw electricity after two years, said the media report.

Moreover, the empowered group of ministers (EGoM), which allocates scarce natural gas to different sectors according to the country's priority, is expected to consider the proposal soon, the official said in the media report.


Earlier, the EGoM in its meeting had directed the oil ministry to rework the distribution of domestic gas without cutting supplies to the fertiliser sector, which tops the priority list of consumers.

However, the EGoM rejected the oil ministry's proposal to treat consumers of fertiliser and power sectors equally and proportionately reduce fuel supplies to urea plants to squeeze about 8-9 mmscmd gas for power generation, added the media report.

Oil ministry officials said that the problem arose after gas output from the KG-D6 block started declining after touching a peak of 62 mmscmd in 2010. The current output from the block is about 14 mmscmd, which is entirely consumed by the fertiliser sector.

Dion Global Solutions Ltd.

Read more about: natural gas power units
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