Hyderabad, October 14: Reliance Industries Ltd (RIL) on Tuesday said it is keeping production at its Krishna Godavari (KG) basin at 40 million metric square cubic meters per day (mmscmd) for the want of new customers.
“We can go up to 65 mmscmd immediately. But, the government is taking time in identifying new customers,” PMS Prasad, executive director and board member of RIL, said here on Tuesday. Prasad was in Hyderabad to hand over a cheque of Rs11.11 crore to Andhra Pradesh chief minister K Rosaiah towards the contribution for relief and rehabilitation in the flood affected areas in the state.
“There is demand for about 85 mmscmd now. The producer is ready to provide the required gas. There are buyers waiting for the gas. But, it is the government which is not allotting the gas to the users,” Prasad said.
The company supplies about 10 mmscmd to units within AP including some fertiliser and power units. The state government, too, has been demanding preferential treatment in gas supplies to the units based in the state.
According to the state government sources, there is an additional demand for about 10 mmscmd from industries in various parts of the state.
Prasad said that the production schedules of the company are on track and there would be some adjustments due to the non-availability of rigs.
On the AP government becoming part of the ONGC consortium which had won four oil and gas blocks in the KG basin, Prasad said, “This is a very good development. There are many unexplored areas and there is room for many players. But, there would be no specific advantage to any successful bidders since all of them will have to again go through the government for selling the gas or getting it allotted to a particular user.”
-Agencies