EGOM meeting: Exact observations

The Empowered Group of Minister had a meeting on gas allocation under the chairmanship of Pranab Mukherjee after RIL's announcement of a freeze in gas output at 60 mmscmd. While a lot had been said and written, the following were the actual observations of the EGOM:

• The present availability of indigenous gas is around 143 mmscmd, which include KG D6 production of around 60 mmscmd. KG D6 gas is being produced in accordance with the schedule earlier indicated by the Directorate General of Hydrocarbons (DGH) and is being utilized by various priority sectors in accordance with EGoM's decisions. The EGoM noted the projections regarding the total availability of indigenous gas from all sources. An increase of around 9 mmscmd is expected in 2011-12 from ONGC's nominated marginal fields. The next substantial increase is expected only in 2012-13 from NELP fields, of 20 mmscmd through an increase in KG D-6 production from the present 60 mmscmd to 80 mmscmd and around 8 mmscmd from GSPC's block in KG basin. As of now, there is no expectation of substantial increase in production beyond 2012-13 till 2015-16.
•  Department of Fertilizers (DoF) projected cumulative additional requirement of natural gas during 2011-12, 2012-13 & 2013-14 at 3.43 mmscmd, 16.87 mmscmd & 63.65 mmscmd respectively on account of conversion of existing naphtha-based and fuel oil-based urea plants to gas, expansion and revamp of existing plants, revival of closed units and greenfield units. 
•  The Ministry of Power (MoP) informed that in accordance with the assessment of the Central Electricity Authority (CFA), six under construction plants with a total capacity of 4066 MW, with total requirement of 15.59 mmscmd  are expected to come up in the 11th Plan and start drawing gas by March 2012. It was further stated that some power plants with a total requirement of 20.96 mmscmd have claimed that they would come up in the 11th Plan and have placed orders far equipment though the CEA has yet to assess these projects. The EGoM directed the MoP to obtain the CEA's assessment expeditiously for further consideration.
•  The Supreme Court of India delivered a judgment on 07.05.2010 in the case of Reliance Industries Limited (RIL) vs Reliance Natural Resources Limited (RNRL) (Civil Appeal No.4273/2010), which was heard along with Union of India vs Reliance Industries Limited (Civil Appeal No. 4277/2010), wherein the government's appeal was allowed and the final Judgment dated 15th June, 2009 of Division Bench of Bombay High Court in Appeal No.844/2007 was set aside. EGoM took note of the Supreme Court judgment and the Gas Supply Master Agreement (GSMA) executed by the two parties consequent to and in compliance with the Supreme Court orders.
• MoP indicated that the Solicitor General has given an opinion regarding supply of KG D-6 gas to NTPC's proposed expansion projects in Kawas & Gandhar. The chairperson desired that the same should be circulated to all the Members of the EGoM for their perusal and comments