India’s Reliance Industries Ltd will start pumping 25 million standard cubic metres a day (mmscmd) of natural gas from its D-6 field in the Krishna Godavari basin by September, the government said.This would help fertiliser plants switch to gas from naphtha and fuel oil, boost power generation, and increase supplies to households, the oil ministry said in a statement on Wednesday.
Output from the deep-sea field in the Bay of Bengal is expected to rise to 40 mmscmd by March 2009, it said.
The government said companies that discover gas in India under the New Exploration Licencing Policy must accord priority to urea plants, LPG plants, power plants and city gas distribution projects in that order.
"The sale would be on the basis of formula for determining the price as approved by the government," it said.
Twenty-two natural gas-based urea plants, which are using naphtha and fuel oil as natural gas was not available, would benefit from the decision, the statement said.
The government said 3 mmscmd of Reliance’s gas would be supplied to existing gas-based LPG plants, while 18 mmscmd would be supplied to power plants which were idle, underutilised or due to be commissioned this fiscal year.
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