Centre rules out additional gas supply to Andhra HYDERABAD: Union minister of state for power Jyotiraditya Scindia has poured cold water on the state governments hopes of getting additional gas supply from the Krishna-Godavari Basin wells. In his reply to chief minister Kiran Kumar Reddys letter, Scindia made it clear that the supply of KG Basin gas to Andhra Pradesh cannot be increased. The Empowered Group of Ministers (EGoM) has finalized the gas allocation formula for different sectors and there is no proposal to alter the same to reduce supply for fertilizer units, said the Union minister in his letter that reached the state two days ago. Kirans letter to the Union power ministry was prompted by the announcement by Reliance Industries Ltd (RIL) last week that it has commenced production at its new MA-8 well in the KG Basin. Sensing that additional gas is set to be produced, the CM sought allocation of the same for the state. Presently, the gas allocation formula that is in vogue is inclined in favour of fertilizer projects. Keeping in mind that six of its gas-based power projects are starved of gas from the KG Basin, Andhra Pradesh has been seeking a review of the gas allocation. Affected due to the paucity of gas are the GMR plant at Vemagiri (370 MW), Reliance Energy at Samalkot (220 MW) Jegurupadu extension project (220 MW), Konaseema plant at Peddapuram (445 MW), Gauthami plant in East Godavari district (464 MW) and GMR plant at Samalkot (237 MW). At present, Lanco Power with a capacity of 351 MW is producing 167 MW of power that too with the help of Regasified Liquified Natural Gas (RLNG) while Vijjeswaram Project is producing 103 MW against its full capacity of 217 MW and Spectrum has limited its generation to 90 MW from 208 MW. These three units are receiving RLNG from other states. Gas production in KG basin hit an all-time low of 13.7 mscmd from 62 mscmd at the time of commissioning. In view of the Centres binding allotments for the fertilizer and chemical factories across the country, gas-based power projects in Andhra Pradesh are at present receiving only 1.5 mscmd from the KG basin.
Posted on: Thu, 16 Jan 2014 08:52:37 +0000
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