Tuesday, 10 May 2011
PTI reported that in line with an oil ministry order, Reliance Industries has cut natural gas supplies to non core users like refineries and steel plants so that full demand of fertilizer and power plants can be met.
Reliance has started implementing the ministry's priority allocation order which had asked it to first supply natural gas from its eastern offshore KG-D6 fields to priority sector like urea making units and power plants.
Supplies to non core refineries, petrochemical units and sponge iron plants will be made only if there are any volumes left after supplies to priority sector.
An industry official said that "Reliance this morning curtailed gas supplies to non core users, including its own refineries and petrochemical plant."
The oil ministry directive followed a sharp drop in output at KG-D6 fields. Production fell from 61.5 million standard cubic meters per day achieved in March, 2010 to under 50 million standard cubic meters per day currently, instead of rising to about 69 million standard cubic meters per day as was projected previously.
Output at KG-D6, the nation's largest gas field, is just enough to meet the contracted demand of fertilizer units, power plants, LPG extraction units and city gas distribution firms that sell CNG to automobiles and piped cooking gas to households.
Essar Steel has signed up for 3.2 million standard cubic meters per day, Welspun Maxsteel 0.40 million standard cubic meters per day and Ispat 0.59 million standard cubic meters per day. Besides, Reliance's petrochemical plant gets 1.17 million standard cubic meters per day and a sizeable 4.21 million standard cubic meters per day goes to refineries including the Jamnagar units of Reliance. (sourced from PTI)
PTI reported that in line with an oil ministry order, Reliance Industries has cut natural gas supplies to non core users like refineries and steel plants so that full demand of fertilizer and power plants can be met.
Reliance has started implementing the ministry's priority allocation order which had asked it to first supply natural gas from its eastern offshore KG-D6 fields to priority sector like urea making units and power plants.
Supplies to non core refineries, petrochemical units and sponge iron plants will be made only if there are any volumes left after supplies to priority sector.
An industry official said that "Reliance this morning curtailed gas supplies to non core users, including its own refineries and petrochemical plant."
The oil ministry directive followed a sharp drop in output at KG-D6 fields. Production fell from 61.5 million standard cubic meters per day achieved in March, 2010 to under 50 million standard cubic meters per day currently, instead of rising to about 69 million standard cubic meters per day as was projected previously.
Output at KG-D6, the nation's largest gas field, is just enough to meet the contracted demand of fertilizer units, power plants, LPG extraction units and city gas distribution firms that sell CNG to automobiles and piped cooking gas to households.
Essar Steel has signed up for 3.2 million standard cubic meters per day, Welspun Maxsteel 0.40 million standard cubic meters per day and Ispat 0.59 million standard cubic meters per day. Besides, Reliance's petrochemical plant gets 1.17 million standard cubic meters per day and a sizeable 4.21 million standard cubic meters per day goes to refineries including the Jamnagar units of Reliance. (sourced from PTI)
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