14 March 2013

Indo Gulf Fertilizer to get natural gas from RIL's offshore KG-D6 fields

Indo Gulf Fertilizer and Reliance Industries have signed an agreement today for supply of natural gas from Krishna-Godavari basin KG-D6 fields of RIL to Jagdishpur plant of Indo Gulf Fertilizer.

As per the Gas Sales and Purchase Agreement (GSPA), Reliance Industries (RIL) will supply 0.228 mmscmd of natural gas to Indo Gulf Fertilizer. To get this gas through pipeline, Indo Gulf have to sign an agreement with state-owned GAIL India Limited. Reliance Industries (RIL) have to sign a similar GSPA agreement with IFFCO too to supply 0.27 mmscmd of gas to  Phulpur plant very soon.  

Reliance Industries (RIL) is currently producing 17 mmscmd of natural gas from KG-D6 fields. Currently urea sector is on top priority of the government following by LPG extraction plant and then power plants. Out off this 17 mmscmd gas, about 15.668 mmscmd has to supplied to 16  urea-making fertiliser plants and the rest has to consumed by LPG extraction units. So no gas left for the 25 power plants which are in third priority as per government current guidelines.

The Bay of Bengal KG-D6 fields, which began gas production in April 2009, had hit a peak of 69.43 mmscmd of natural gas in March 2010. Now it is fallen to 17 mmscmd gas. After this sharp fall in gas production, the government put 25 power plants in 3rd priority which had an original allocation of 28.90 mmscmd of gas.

Stay tuned to Fertilizer News for more news on KG-D6 fields !

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