RIL Will Be Asked To Supply Gas To The Core Business Users

Take the challenge Reliance Industries, the oil ministry ordered the company Mukesh Ambani term to immediately stop the sale of natural gas to users of non-core as Essar Steel to meet all requirements of fertilizer plants and power.

With reference to the May 2010 Supreme Court ruling that upheld the right frame of gas used in policy last week wrote to the Ministry of Reliance redirect in the first of its natural gas reserves in KG-D6 certain priority areas, such as pesticides and energy, official sources said, according to the PTI report.

Reliance is currently producing about 50 million cubic meters of gas per day on its eastern offshore KG-D6 block gas, enough to meet demand for the priority areas - units of urea production, power plants, liquefied natural gas extraction and city ​​gas distribution companies. He had refused to comply with the order of the Department prior to the fuel required to go to sectors like steel, refineries and petrochemicals that if there were any gas left after the meeting demand in key areas.

sponge iron plant non-core, petrochemical plants and oil refineries amounted to 13.13 MMSCMD 60, 76, KG-D6 gas MMSCMD, the government allocated in 2008 and 2009. With production falling to about 50 MMSCMD, wanted a concerned fuel oil ministry first go to key sectors. But the agency has refused to follow the dictates and pursued a policy of July 2010, prorated, resulting in a commensurate reduction in supply to all consumers, including urea-making plants and power generation units, said.

Reliance Communications may not be immediately reached for comment. With production just over quota 47.59 MMSCMD key sectors, Reliance said it can not stop deliveries to a customer unless the government frees him from any legal and financial damage as a result of such action. Sources said the department was not impressed by the argument of the company, citing the decision of the Supreme Court to support his point.

Reliance had in its gas supply and price dispute with Reliance Anil Ambani group Natural Resources Ltd (RNRL), submitted to the Supreme Court that it is merely a contractor and the government alone has the right to set prices, and gas users. The same position was taken by the government, the Supreme Court upheld his sentence on May 7

According to sources, Reliance had argued that he did not own gas and is bound by the orders of government and politics of gas use (GUP). The logic of the department, he does not want fertilizer production or production of electricity during the summer season to suffer due to decreased production of KG-D6 gas.

Reliance has already signed customers for 60.76 MMSCMD gas, while production from its eastern offshore KG-D6 fields in the week ending April 3 were about 49 MMSCMD. The output power is less than the $ 61.5 MMSCMD in March 2010. The government has given high priority to urea plants, followed by LPG extraction plants, power plants and projects of the city gas distribution in the gas from the KG-D6 allocation. Sixteen fertilizer plant has been allocated 15.35 MMSCMD KG-D6 gas on a firm or permanently, while 27 stations in the public sector and the private sector rose 29 MMSCMD.

A significant 7.79 MMSCMD gas has been signed by producers of steel, while the LPG plants were attributed 2.59 MMSCMD.
Refineries, including any reliance on, of 3.46 MMSCMD projects, city gas and petrochemical MMSCMD 0.65 1.92 Balance MMSCMD. The allocation of priority sectors amounted to 47.59 MMSCMD, leaving almost little steel mills, refineries and petrochemical units of current production, they said.