GAIL ready to cut gas supplies to customers

Vol 6, PW 8 (19 Jun 02) News in Brief

GAIL will soon begin slashing gas supplies to its customers because of a drop in production from onshore south Gujarat.

We understand GAIL has prepared an 'Action Plan' to ration gas supplies among existing customers because it recently discovered that south Gujarat onshore gas availability is only around 3.45m cm/d but demand is more than double at 8.5m cm/d. Equally bad is the situation in north Gujarat, where production is also going down.

GAIL has divided its south Gujarat customers into eight categories on the basis of how much gas they receive and is proposing cuts on an "incremental basis". Put simply this means the more gas a customer has been allocated, the more he stands to lose.

GAIL's plan is with the Gas Linkage Committee for "examination and recommendations."