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Energy | October 2011

Government move on gas supply irks companies

The government allocated scarce natural gas to households and cars in Andhra Pradesh triggering protests from companies in other states that have built infrastructure after being promised gas but have been denied supplies.

The ministry has directed Gail India to divert 0.045 mmscmd of the KG-D6 gas meant for its Ankot LPG plant to Bhagyanagar Gas (BGL) at Shamirpet. It asked the state-run firm to make up for the shortfall with LNG from spot market. BGL, which was allocated gas for Hyderabad and Kakinada by an empowered group of ministers three years ago, will be able to start operations, unlike the Adani Group in Ahmedabad, Gail Gas Ltd in Kota, Meerut, Dewas and Sonepat, and Saumya DSM Infratech in Mathura. One of these companies is contemplating legal action.

An oil ministry official said it was merely a coincidence that area of BGL's operations and the minister's native state happen to be the same.

Gail India
Tel: 91-11-26172580, 26185624

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