EGoM meet on gas allocations-III: NELP gas availability to go up by 31 mmscmd by 2012-13, but demands may still go unmet

The petroleum ministry has projected that the EGoM (empowered group of ministers) will have an additional 31 mmscmd of gas from the NELP blocks at their disposal by the year 2012-13. The additional production is expected to occur primarily from RIL's KG-D6 block and GSPC's Deen Dayal West (DDW) fields. Presently, NELP gas availability is at the 60 mmscmd mark.

• However, it was also pointed out that the EGoM has already made total allocations of 93.88 mmscmd of KG D6 gas, out of which 63.715 mmscmd consisted of firm allocation and the remaining 30.165 mmscmd has been allocated on a fallback basis.
• Since the demand for gas from existing plants in the power, fertiliser and CGD (city gas distribution) have largely been met by KG-D6 gas allocations, the additional production ahs largely been allocated to planned or upcoming projects in these sectors. This should help in financial closure and timely execution of these projects and it should also offer a secure market to upstream producers.
• Pertinently, however, the three priority sectors, vis-a-vis, power, fertliser and CGD, have asked for additional gas amounting to well above the 31 mmscmd of additional production.
• The requirements of NELP gas which have been filed in by these sectors are as follows:
• The DoF (department of fertilisers) has asked for 20.81 mmscmd of additional gas for conversion of its naphtha and fuel-oil based urea plants to gas-based ones, revamping existing plants and for new "greenfield" units. The Chambal Fertilisers Company Ltd (CFCL) has surrendered 1.1 mmscmd of RLNG to GSPC till 2028, which needs to be replenished to the fertiliser company.
•  --The MoP (ministry of power) has also asked for 9.83 mmscmd of additional gas for six power plants which are to be commissioned by March, 2012, 20.803 mmscmd for nine other plants which are likely to be commissioned in the eleventh plan period and 9.7 mmscmd directly to NTPC (National Thermal Power Corporation). Moreover, DMICDC (Delhi-Mumbai Industrial Corridor Development Corp Ltd) has requested for 3.75 mmscmd of gas for its 1,000 MW project.
• The PNGRB (petroleum and natural gas regulatory board) has projected that gas consumption by CGD entities would go up from its present level of 6.59 mmscmd to 11.958 mmscmd by 2012, thus generating an additional demand of 5.368 mmscmd.