EGoM on gas utilization to meet on August 14

NEW DELHI: The empowered group of ministers ( EGoM), which allocates scarce natural gas to different sectors according to the country’s priority, will consider a proposal to squeeze some natural gas from non-priority consumers and divert the same to fuel-starved power units on August 14, government officials said.


The oil ministry plans to squeeze some gas from non-priority consumers for the power units, which will be enough to generate 240-480 mw electricity immediately and about 2,400 mw after two years, officials said.

In its last meeting on July 17, the EGoM had directed the oil ministry to rework the distribution of domestic gas without cutting supplies to the fertiliser sector, which tops the priority list of consumers.

“No government can afford to cut gas supplies to the fertiliser sector and branded against farmers, especially before the general elections,” an official present in the EGoM meet said. The panel had directed oil and fertiliser ministries to find a more practical solution.

Oil ministry officials say the problem arose after gas output from the KG-D6 block started declining after touching a peak of 62 mmscmd in 2010. The current output from the block is about 14 mmscmd, which is entirely consumed by the fertiliser sector.