Gas allocation must be fair, ministry tells GAIL

Vol 17, PW 9 (28 Nov 13) People & Policy

Nikunj Kumar Srivastava, director gas in the oil ministry, issued a 13-point set of guidelines for the retail gas industry on November 14, in a radical move to shake up the sector.

Designed to re-allocate cheap domestic gas, the guidelines are in response to a Gujarat High Court ruling last month (October) that domestic gas must be fairly and uniformly shared across the country. GAIL chairman BC Tripathi and Augustine Peter, DG of the Petroleum Planning and Analysis Cell (PPAC), both received the guidelines, which come into force on November 30.

Among losers will be Surat, supplied by GSPC-owned Gujarat Gas, which will no longer be entitled to 470,000 cm/d from the PMT fields at $5.65/mmbtu. Winners include Ahmedabad, which will get gas at the same price as sold to Mumbai and Delhi.

“This is done to enforce equality," writes Srivastava. "The proportion of domestic gas supply to all gas retailers for CNG and households should be uniform.

” Overall the ministry has increased the amount of domestic gas to retailers from 5.75m cm/d in 2012-13 to 6.4m cm/d this year: 5.21m cm/d of APM gas, 470,000 cm/d of PMT gas and 720,000cm/d of APM and PMT gas currently supplied to hotels, factories and other non-priority areas. Last year retail gas players also sold 2.27m cm/d R-LNG.