The supply of KG-D6 gas from Jul

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indianpetro.com
__________________________________________________Thu, 22 Dec, 2011 2:19 PM________________________________________________

KG-D6 gas-II: Dwindling production translates into "nil" allocation to CGD companies
Dec 22: The continuing fall in KG -D6 production is taking its toll on the city gas distribution (CGD) business. ?The CGD sector, which is last on the priority list of the core sector after fertilizers, LPG and power, did not receive any KG -D6 gas during October 2011, in light of the dwindling production from the Krishna-Godawari basin. ?Gas supply to the sector -- which has been allocated 0.65 MMSCMD of KG-D6 gas -- had to be pulled out as gas output in October was not sufficient to meet the allocation of power and fertilizer companies. ?During the month, the total KG-D6 gas available for consumption got reduced to 42.27 MMSCMD -- against the annual average production of 55.29 MMSCMD during 2010 -11 -- from the earlier maximum level of 60 MMSCMD in March 2010. ?Clearly, the CGD sector will have to get used to not doing business with domestic gas anymore. APM allocations are likely to shrink and all new gas is likely to go only to fertilizer and power companies only. ?The only way out is to bank on RLNG, which is not an unviable proposition as has been proven by the fact that Gujarat CGD companies seem be doing fine even if they are 100% dependent on RLNG (Click on Details for more information) xxxxxxxxxxxxxxxxxxxxxxxxxxxxx BACKGROUND The supply of KG -D6 gas from July -2010 (last E-GOM meeting was held on 28.7.10) to October -2011 against the allocations (Total and core sector) made by the E-GOM is in the graph given below:

http://indianpetro.com/articleView.do?articleID=97307&pgNo=0&contentViewMode... 12/23/2011

The supply of KG-D6 gas from Jul

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CURRENT GAS PRODUCTION/SUPPLY STATUS During the month of October -2011, the total KGD6 gas available for consumption has reduced to 42.27 MMSCMD from the earlier maximum level of 60 mmscmd in March 2010. This is against the annual average production of 55.29 mmscmd during 2010 -11. The current production level is not sufficient to meet the core sector allocation of 52.201 mmscmd. In fact, as a result of this downtrend/k in production, the supply to KGD6 gas to the CGD sector which is the last of the core sector has been nil during October -2011.^ During this period, the supply to the first two core sectors i.e., Fertilizer and LPG could be met fully and the supply to Power sector could only be met partially. . The details of the supply to the sectors that received gas is given below. The customer wise gas supply during the month of October-2011 is at Annex-V. (Figures in mmscmd) Core Sector Fertilizers LPG Power Signed GSPA 15.350 2.59 29 Actual KG-D6 gas supply ( October-2011*) 14.45 2.54 24.57 (@ 75% PLF for AP plants and 70?/ PLF elsewhere) 0

CGD

0.65

* The shortfall in supply in any sector, if any, is due to non-off take/due to planned maintenance/ shutdown of production facility of the customer.

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http://indianpetro.com/articleView.do?articleID=97307&pgNo=0&contentViewMode... 12/23/2011