No better for gas customers in south Gujarat

Vol 5, PW 13 (15 Aug 01) Midstream & Downstream

Worse news for south Gujarat.

Information from the Gas Linkage Committee reveals there is a requirement of around 8.4m cm/d. But total availability is only around 4m cm/d.

"With the expected additional availability of low pressure gas after compression by ONGC, the total availability of onshore gas in this region is not expected to exceed 4.5m cm/d," we learn. "After the gas shrinkage of around 900,000 cm/d at IPCL and GAIL's plants, the net available gas for distribution to consumers would be around 3.6m cm/d." Power and fertiliser units are the main customers in this region, making up 84% of the total requirement, while small scale industries make up the rest.

Warns the committee: "Any prolonged curtailment in gas supply to them (small scale industries) would lead to a lot of resentment. It is suggested not to regulate gas supply to these consumers but to make the supply on 'as and when available' basis." Contracts with these customers will be "treated on fallback basis and contracts with them shall be renewed on fallback basis." As for the power sector customers, the committee recommends that 40% of the existing allocation to them shall be treated on "firm basis" (which is in line with actual availability and supply to this sector) and the balance shall be considered on fallback basis.

"The contract with these consumers shall also be renewed on this basis."