GAIL, RIL to swap gas for optimum use

NEW DELHI: GAIL and RIL is to enter into a swap arrangement to facilitate optimum use of available natural gas in the country.

An oil ministry statement on Monday said since gas from the latter's Andhra offshore field cannot be used for making petrochemicals, the state utility will exchange suitable gas with the Mukesh Ambani-led firm's petrohem units that have been allocated nearly 2 mcmd (million cubic metres per day) from India's biggest gas field.

According to the statement, the ministerial panel for distributing has said GAIL will supply adequate quantities to its exisitng consumers to make up for any ‘‘shrinkage'' in supply of rich gas.

Gas swap is not uncommon in industry as using ‘rich' gas, from which petrochem can be extracted and costs more, for firing industrial burners entails loss of value-adition. The panel had on October 27 identified consumers for incremental increase in production from Andhra offhsore field.