RIL, fertilizer units to sign gas supply pact soon

Reliance Industries Limited (RIL) and fertilizer units will sign the gas sales and purchase agreement in the next few days as the basic modalities have been worked out, according to the Petroleum Secretary, R. S. Pandey. Speaking on the sidelines of a function here on Tuesday, Mr. Pandey said RIL would begin natural gas production at its eastern offshore Krishna Godavari basin KG-D6 fields in the first week of April. “I am told that RIL will start production in early April. KG-D6, which holds the promise of doubling natural gas availability in the country when it hits a peak output of 80 million standard cubic metres per day in one-and-a-half years, would start with 5-10 mmscmd and ramp it up to 40 mmscmd by July. Mr. Pandey said RIL would sign gas sales contracts with fertilizer companies, its first customers, in the next few days. “I have been told by the Department of Fertiliser and RIL that they have almost finalised the agreement and the gas sales and purchase agreement will be signed in the next few days,” he said. Asked if the Government had plans to change the allocation of KG-D6 gas, Mr. Pandey said the priority list decided by an Empowered Group of Ministers (EGoM) would not be altered. Eight fertilizer plants on the Hazira-Bijaipur-Jagdishpur pipeline, the Gail India-run pipeline that transports fuel from the Gujarat coast to north India, circuit will get 7.026 mmscmd of Reliance gas, while 6.689 mmscmd will go to Kribhco and GSFC units in Gujarat, Rashtriya Chemical’s Maharashtra plants and Nagarjuna Fertiliser in Andhra Pradesh. The KG-D6 gas will land at Kakinada in Andhra Pradesh from where it will be transported to Bharuch in Gujarat through a 1,386-km pipeline laid by RIL. In Gujarat, Reliance will use the pipeline network of Gujarat State Petronet to take the gas to end-consumers as well as connect to the HBJ pipeline.