Indian gas shortage prompts reprioritisation of gas-fired plants

• 10 years ago (2013-07-16)
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Indian ministers are considering changes to India’s gas allocating priorities, re-routing natural gas to idle factories and power plants in the face of ever dwindling domestic supplies.

A group of ministers, led by Defence Minister A.K. Antony, is scheduled to meet in New Delhi to discuss the reallocation, according to Oil Minister Veerappa Moily.

Three years of falling output from India’s key gas field, Reliance Industries’ KG-D6 field in the Bay of Bengal, has dramatically constrained supply to India’s power stations, oil refineries and steel plants; forcing shutdowns or unsustainably expensive gas imports.

Production from the KG-D6 field has dropped more than 75 per cent in the past three years, with Reliance claiming the field has proved much more difficult to harvest than expected.

Gas production from Reliance’s KG-D6 field declined 39 per cent, year-on-year, for March 31st 2013; falling to 336 billion cubic feet. The drop was spurred by reservoir complexity and a natural decline in output, the company said in a statement.

The Indian government currently prioritises gas supplies to fertilizer makers, liquefied petroleum gas extractors, and only then to power generators.

As of the end of May, India had 20 359 MW of gas-based electricity generating capacity, 9 per cent of its total, according to Central Electricity Authority data.