(a) whether certain industrial sectors have been short-listed for selling gas produced in Krishna-Godavari (KG) basin;
(b) if so, the names of the short-listed sectors;
(c) whether the priority of these sectors was decided keeping in view the needs of the country;
(d) if so, the order of priority of these sectors; and
(e) the allocation of gas from KG basin made to the different industrial sectors?
MINISTER OF PETROLEUM & NATURAL GAS (SHRI MURLI DEORA)
(a) to (e): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF LOK SABHA STARRED QUESTION NO.284 TO BE
ANSWERED ON 15-04-2010 REGARDING ALLOCATION OF NATURAL GAS FROM KG BASIN
(a) to (d):
1. The Empowered Group of Ministers (EGoM) constituted to decide issues related to inter
alia commercial utilization of gas under New Exploration Licensing Policy (NELP) has taken
decisions regarding the supply of gas produced from KG D6 keeping in view the needs of the
country and shortfall being faced by existing gas-based assets. The EGoM has decided that
KG D6 gas be supplied on firm basis to the following priority sectors:-
(i) Existing gas-based fertilizers plants producing subsidized fertilizers.
(ii) Existing gas-based LPG plants
(iii) Existing gas-based power plants and those to be commissioned in 2009-10,
including liquid fuel plants which are now running on liquid fuel and could switch
over to natural gas (for operating at Plant Load Factor (PLF) of 75% in Andhra Pradesh
and 70% in other parts of India).
(iv) City Gas Distribution (CGD) entities for supply to domestic & transport
sectors.
(v) Existing gas-based steel plants (only for feedstock & not for captive
power requirement)
(vi) Existing gas-based petrochemicals plants (only for feedstock & not for
captive power requirement)
(vii) Existing refineries
Out of the above firm allocations, the highest priority has been accorded in the
mentioned sequence to
i) existing gas-based urea plants,
ii) existing gas-based LPG plants,
iii) existing gas-based power plants & those to be commissioned in 2009-10 and
iv) CGD
entities for supply to domestic & transport sectors.
2. Further, the EGoM has also taken decisions regarding supply of KG D6 gas on fallback
basis to the following priority sectors:-
(i) Existing gas-based power plants and those to be commissioned in 2009-10, including
liquid fuel plants which are now running on liquid fuel and could switch over to natural gas(for operating at PLF beyond 75% in AP and 70% in rest of India).
(ii) CGD entities for supply to commercial & industrial sector customers up to 50,000 scmd(standard cubic meters per day).
(iii) Existing refineries
(iv) Captive power plants
The EGoM has decided that amongst fallback customers, the requirement of power sector(excluding captive power) would be firstly met and, thereafter, all the remaining fallback
customers should be supplied gas.
(e): The quantity of KG D-6 gas allocated to various sectors is as follows:-
(in mmscmd, i.e., million scmd)
SL. No. Sector Firm allocations Fallback allocations Grand Total
1. Fertilizer 15.508 15.508
2. LPG 3 3
3. Power 31.165 12 43.165
4. CGD 0.83 2 2.83
5. Steel 4.19 4.19
6. Petrochemicals 1.918 1.918
7. Refineries 5 6 11
8. Captive Power 10 10
Total 61.611 30 91.611