Karna seeks 40-45 mmscmd KG-D6 gas from Centre

Karnataka Chief Minister B S Yeddyurappa has written to Prime Minister Manmohan Singh seeking 40-45 mmscmd of natural gas for industries in the state, joining the growing crowd of users jostling for the fuel from fields operated by Reliance Industries.

"Karnataka has urgent need for gas for setting up of about 9,000 MW of power plants and city gas distribution. Gas will also be required for various industrial units and commercial establishments," he wrote to prime minister last month.

Previously, chief ministers of Andhra Pradesh and Haryana had written to the Centre seeking 7.5-8 million standard cubic metres per day each of RIL's KG-D6 field gas for power plants in their respective states immediately.

Fertiliser Secretary Atul Chaturvedi last week wrote to Cabinet Secretary K M Chandrasekhar demanding 43.47 mmscmd gas 'to convert all existing non-gas based units to gas, revive closed urea units and for setting up of expansion projects.'

Power ministry has already sought some 80 mmscmd gas for projects planned till 2017.

Stating that natural gas had emerged as key driver to development of any region, Yeddyurappa said 'we are eagerly awaiting the allocation of gas to our state having regard to (40-45 mmscmd) requirement which are critical to our developmental plans.'

RIL's KG-D6 fields, which are currently producing 36-37 mmscmd of gas, will hit a peak output of 80 mmscmd by year end.

While the initial 40 mmscmd output from KG-D6 has been allocated to fertiliser, power, city gas and steel plants, Petroleum Minister Murli Deora has asked Prime Minister to constitute a ministerial panel to decide on consumer of incremental gas.

Yeddyurappa said the Karnataka government had been pursuing for a long time for pipeline connectivity to the state and has signed an agreement with state-run GAIL for facilitating the laying of Dabhol-Bangalore and Cochin-Bangalore gas pipelines.

"India's largest pipeline, namely East-West pipeline (from Kakinada in Andhra Pradesh to Baruch in Gujarat) constructed by Reliance is passing through Karnataka," he said.

The ministerial panel to decide on consumers of additional gas from RIL's KG-D6 fields is, however, yet to be formed.

"I am writing to request you to kindly consider our demand for gas while making allocations," he added.