Low KG-D6 gas output behind power shortfall: Jaipal Reddy

Oil Minister S Jaipal Reddy has said that falling output of Reliance Industries' (RIL) KG-D6 gas fields is causing acute shortage in power generation.

"There is severe shortage in availability of gas in the case of KG basin. KG basin was to produce 80 million standard cubic meters per day (mscmd) in the current year. As against 80 mscmd, it is producing only 29 mscmd," he said.

The minister said Andhra Pradesh, his home state, has been the most hit as cut in gas supplies to gas-based power plants have added to the drop in electricity generation at hydel power plants due to drought and thermal plants due to coal shortage.

Things have been made worse as the government has decided to cut gas supplies to fuel-starved power plants across the country so that requirement of one power station at Dabhol in Maharashtra is met to the full.



The Oil Ministry had last week ordered RIL to use the dwindling KG-D6 gas field output to first meet full requirement of Dabhol power plant in Maharashtra and supply any remaining output among the 24 other power plants.

That decision, Reddy said, was taken by an Empowered Group of Ministers (EGoM) in 2008.

"I will consult all other ministries to see what can be done," he said.

Power plants currently get about 12 mscmd of gas from KG-D6. They would be left with hardly 4 mscmd after 7.6 mmcmd is first supplied to Dahbol plant as per the Ministry order.

In Andhra Pradesh, supplies to power plant will reduce by 2 mscmd, resulting in 400 MW of electricity generation being effected.