Reliance protests GAIL gas supply cut to Samalkot

Vol 8, PW 13 (22 Sep 04) News in Brief

Reliance is protesting GAIL plans to stop supplying 300, 000 cm/d gas to its 220-MW power plant at Samalkot in Andhra Pradesh.

On 25th August Reliance Energys Satish Seth wrote to GAIL saying Reliance needs the additional gas to complement the 640,000 cm/d it already receives to maintain the 85% Plant Load Factor at Samalkot. Seth says Reliance will be fined Rs8.80cr ($1.9m) if the PLF at Samalkot drops below 85%.

GAIL replies that AP Transco had instructed it to supply this gas to Samalkot on a temporary basis but that it must now redistribute it to other power producers in Andhra Pradesh. We need to give opportunity to all power producers on an equitable basis.

GAIL adds that producer Cairn Energy believes supplies of this gas will continue longer. On 28th September, Andhra Pradesh chief secretary Mohan Kanda will be in Delhi for talks with the PMO about gas allocation to power plants in the state.