Mahagenco to pay market price for gas supplies to 1220 MW Uran Expansion

Given the stagnant production from Reliance Industries` KG-D6 basin, the Ministry of Petroleum and Natural gas (MoPNG) has asked Mahagenco to look for alternatives, like tie ups with GAIL, to source fuel for its 1220 MW Uran Gas Turbine Power Station.

• Notably, the Empowered Group of Ministers (EGoM), appointed to make allocations from the KG-D6, has thrown up its hands on supplies to power stations that are to be commissioned beyond 2009-10. 8However, citing the existence of sufficient LNG capacity with GAIL, the ministry has claimed that work on the Uran project can commence if a mutually satisfactory agreement between Mahagenco and GAIL can be reached. 
• Pertinently, Mahagenco had sought priority in recommendations for natural gas allocation from the Ministry of Power (MoP) in view of the ever increasing power demand in the state of Maharashtra. Accordingly, it had requested MoP to ask the Ministry of Petroleum and Natural Gas (MoPNG) to allocate 5.4 mmscmd of natural gas to the company from the KG-D6 basin.