The Maharashtra-based Dabhol power plant is likely to get gas supply from Reliance Industries’ gas block in the Krishna-Godavari (KG)-D6 basin on a priority basis as the government has approved the plan. Due to lack of gas and failure of its turbines, the Dabhol power plant has never been able to produce electricity at its full capacity. The plant operated by Ratnagiri Gas and Power Pvt Ltd needs a total of 8.4 mcmd of gas to operate at full capacity. At present, it is getting 5.4 mcmd of regassified liquefied natural gas (R-LNG) from Petronet LNG’s Dahej terminal which is not sufficient.

 

According to an Empowered Group of Ministers (EGoM), Dabhol power plant will buy gas from Reliance Industries at $4.2 per million British thermal unit (mBtu). Under the new allocation, the beleaguered plant will get 1.4 million standard cubic meters per day (mmscmd) of gas from KG-D6. Reliance Industries is scheduled to begin producing gas from the D6 block from January 2009 with initial production of around 15 million cubic metres per day (mcmd). Production would be scaled up to 40 mcmd over the next 3-4 months and then to a peak level of 80 mcmd by the end of 2010.

 

Talking about the new allocation EGoM said that the Dabhol plant is vital for Maharashtra’s power needs hence such a decision has been taken. The gas supply from Reliance Industries will fulfill the demand of the plant to generate full-capacity electricity for the state of Maharashtra.