Oil Min welcomes ADAG demand for gas utilisation policy

For fair allocation of the fuel, Reliance Energy has to withdraw all court cases seeking atleast half of the output from Krishna-Godavari basin.

By PTI | Aug 05, 2007, 06.23 PM IST

NEW DELHI: Petroleum Ministry on Sunday welcomed Anil Ambani Group company Reliance Energy's demand for a gas utilisation policy saying it should withdraw all court cases seeking atleast half of the output from Reliance Industries' Krishna-Godavari basin, for fair allocation of the fuel.

"If they are serious about their demand for gas utilisation policy, we welcome it. For that, they should first withdraw all cases in various courts where they had by virtue of a private family agreement claimed ownership of atleast half of the 80 million standard cubic meters per day of gas to be produced from KG-D6. Unless that happens, how can anyone decide how much gas can be allocated to different sectors," a top Petroleum Ministry official said.

The Petroleum Ministry comments came in response to Anil Ambani group company Reliance Energy Director J P Chalsani demanding a gas utilisation and pricing policy be put in place before deciding on the pricing of gas from KG-D6 fields of Reliance Industries.

"According to Anil Dhirubhai Ambani Group's own presentation to us in June, power sector worldwide consumes 31 per cent of gas. If for argument sake we were to apply the same principle here, only 24 mmscmd out of the 80 mmscmd gas from KG-D6 will be available for the entire power sector that includes state-run firms like NTPC, Dabhol project, ADAG and other private projects. The remaining gas will be split in between other users like fertiliser plants, refineries, steel units and other factories," he said.

"But if ADAG is to squat on 40 mmscmd as part of a private family agreement, to which the entire nation and its economy cannot be held hostage to, how is this utilisation policy possible. More PTI ANZ SM 08051739 DEL NNNN

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