Andhra Pradesh power sector looks forward to D6 gas

Vol 12, PW 21 (26 Mar 09) Midstream & Downstream

Andhra Pradesh chief minister Dr.

YS Rajasekhara Reddy must be feeling vindicated! In September last year Dr. Reddy wrote to Prime Minster Manmohan Singh warning of dire “social and political consequencesâ€‌ if power stations in his Congress-run state were not among the first to benefit from D6 gas.

In his letter Reddy demanded an allocation of 8.93m cm/d from “first supplies.â€‌ His wish has come true – almost! PETROWATCH learns that on March 5 the power ministry submitted a detailed note to the oil ministry listing D6 gas allocation of 21.49m cm/d to 25 power plants across India with a combined installed generation capacity of 12,439.4-MW from April till September 2009.

Among these 25 plants are eight in Andhra Pradesh, which have been allocated 6.2m cm/d – not quite Dr. Reddy’s demand, but close enough! After fertiliser companies, these eight Andhra-based power stations will be the first Indian power stations to receive D6 gas.

“We know about the proposal of a firm gas allocation to our plant,â€‌ says one Andhra-based power producer on the list. “Good to hear about the â€کfirm’ allocation from you.

This is not public yet.â€‌ Another Andhra-based power producer expresses disappointment over the cancellation of a proposed meeting of the Empowered Group of Ministers (EGoM) on March 23 to approve the power ministry â€کwish list’.

“God knows what will happen now,â€‌ he said. “I don’t think there will be any change in the allocation.

Maybe the oil and power ministries will follow the decisions taken during earlier meetings of the EGoM.â€‌ Yet another Andhra-based power producer complains about the decision to cap the PLF (Plant Load Factor) at 70%.

“That is not fair,â€‌ he said. “Why can’t they give us more gas We are ready to pay.

â€‌ Scepticism also centres on the decision to make the allocation valid from April to September. “Reliance says it will reach 40m cm/d production by then,â€‌ we hear.

“But don’t be surprised if they reach 40m cm/d much later, in November or December.â€‌