Reliance Gas to be flowing from April

DESARAJU SURYA
Kakinada: Production of gas in Reliance Industries' D6 block in the Krishna-Godavari basin in Andhra Pradesh will begin in mid-March with an initial capacity of 5 to 10 million cubic meters per day and the output will be stepped up to 40 MCMD by July this year. Distribution of gas will begin either towards the end of March or early April as it will take two weeks to fill the pipelines, according to Reliance Industries Limited (Exploration and Production Business) President and Chief Executive Officer P M S Prasad. Who would get the gas first would, however, be decided by the Government of India, he told a visiting team of reporters at their onshore terminal at Gadimoga. Pre-commissioning trials were currently underway at its off-shore platforms. Admitting that Reliance was behind schedule in commencing full scale production of gas in the D6 block, Prasad said they would, however, achieve the target production of 80 MCMD much ahead than 2012. He said the Empowered Group of Ministers constituted by the Government of India would prepare a list of prospective customers for gas supplies, based on the lists submitted by both the fertilizers and the power ministries, and they would accordingly start the supplies. "We expect to get the list from the EGOM in the next ten days and by the time production of gas starts and we are in a position to distribute it, we will have signed the agreements with the buyers. The selling price at our terminal will be 4.2 US dollars per million British thermal unit," the President said. Replying to questions, he said they were working with the government to supply gas to power generating stations in the first place but the government has to give necessary approval for that. "Fertiliser manufacturing units require about 15 MCMD of gas and we can spare some five MCMD for power stations. We are very keen that gas-based power projects in Andhra Pradesh get the supplies first but again it is up to the government of India to take a decision in this regard," Prasad pointed out. The Reliance E&P president said they were "not happy" with the gas utilization policy of the Centre as they did not have any marketing freedom. "We have to go to the government everyday to sell our gas," he lamented. They were, however, "not unhappy" with the current price at which gas has to be sold. "We wanted the price to be affordable, so 4.2 US dollars is good enough," he pointed out. Head of operations of the D6 block Prem Varma and other senior officials of the company were present on the occasion.