Reliance Industries Gas production

Reliance Industries will start gas production from Krishna basin (KG-DG field) from March second week onwards. Company will sell gas in the open market from April 1st week onwards. Andhra Pradesh based fertiliser and power companies are initially expected to benefit from Reliance gas. The gas will be sold at the government-approved rate of $4.2 per mmbtu. Reliance is expected to produce 18 million standard cubic metres per day (MMSCMD) of gas from the KG-D6 block.
The government gave gas-based urea manufacturing plants the top most priority in allocating the initial 40 million standard cubic meters per day output expected from Reliance's KG-D6 fields. NFCL and GVK power along with Lanco Power (subsidiary of Lanco infra) are the biggest beneficiaries in the initial stage of gas distribution.

Who will benefit from Reliance Gas?

1. Fertiliser companies: Nagarjuna Fertilisers, Tata Chemicals, Chambal Fertilisers, GSFC, Indo Gulf, IFFCO and RFCL are the biggest beneficiaries.

2. Power companies: GVK Power, Lanco Power and NTPC.

Reliance Industries (RIL) gas supply of around 18 mmscd gas from KG basin D6 block to gas-based power plants in the country, would increase power generation by 3,500 to 4,000 MW.

"We are expecting the power generation capacity in the country to be ramped up by 3,500 to 40,00 MW, once RIL KG basin gas starts flowing to existing as well as new gas-based power plants in the country," the apex power body Central Electricity Authority Chairman Rakesh Nath told reporters here.
He said, "Presently we are getting around 34-35 mmscd of gas for various gas-based power plants in the country against the requirement of 70 mmscd. With RIL gas supply the gas deficit for the power plants would come down from 35 mmscd to 17 mmscd."
About the power deficit in the country Nath said, "There is around 25,000 MW power deficit in the country. The total installed power generation capacity in the country is around 1,47,000 MW."


3. Transporters of Gas: Reliance, GAIL and Gujarat State Petronet.