Gas supplies to power sector-II: Planning Commission calls for increased priority to generation

The Planning Commission has warned that if its gas-based capacity addition projections are to be met, the government has to significanly up the priority given to the power sector with respect to allocation of gas supplies. At the moment, only 34% of all the gas in the country is supplied for power generation, a figure that must be revised substantially, according to the apex planning body.

 Installation of 25,000 MW of power plants running at full capacity would call for an additional 100 mmscmd of gas, against the 59 mmscmd supplied to the power sector in 2009-10. This would imply that close to 85-90% of all new gas allocations will be for power projects, an unrealistic proposition.The Planning Commission may well have to contend with 20,000 MW of capacity running at 70%-80% PLF, which would require a more realistic 60 mmscmd of additional gas.

Additional sources must also be tapped

The Planning Commission seems upbeat about the prospects of gas supplies to the power sector in the coming years, even as, historically, projections made by the petroleum ministry usually come to naught. The Commission's exuberance is driven by the fact that the Directorate General of Hydrocarbons, while coming up with its estimates, did not consider a swath of other potential sources that have a real chance of adding to the gas availability in the country. The planning body has suggested the following measures so that its optimism comes to fruition:

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   The US has increased its production of natural gas from shales in a very significant manner. They have been able to meet a major portion of their demand from shale gas. ONGC has started some work in this area with Shclumberger. There is a need to chalk out a crash programme for stepping up production of natural gas from shales. Necessary technical support can be taken from the US companies.
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   Blocks have been given under NELP for production of Coal Bed Methane (CBM). The production is, so far, very insignificant. If this can go up in the coming years, it will have enormous potential
  

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          • • • • •  The matter of obtaining gas through pipelines from neighboring countries has been under discussions for some time. It seems that the proposals for gas supplies from Turkmenistan and Myanmar have not fructified. Dialogues are still on with Iran. Such measures will need to be explored further, subject to reasonable cost of delivered gas.
          
          

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