Date:09/05/2005 URL: http://www.thehindu.com/2005/05/09/stories/2005050913300500.htm

Andhra Pradesh

Short supply of natural gas due to fall in output

Special Correspondent

HYDERABAD: The Gas Authority of India Limited (GAIL) has attributed the short supply of natural gas, if any, to the four independent power producers (IPP), to the drastic fall in the output in the Krishna-Godavari basin and the Ravva fields.

Reacting to the reports that GVK Industries, Konaseema, Gauthami and Vemagiri power projects are in for an "artificial shortage", the GAIL said on Friday that the gas availability with the ONGC from K-G basin and the Ravva fields had come down by 17 per cent and 5 per cent respectively. The scarcity was also due to the fact the liquefied natural gas terminal planned at Kakinada did not materialise.

The GAIL, however, said, whatever quantum of gas was available with it would be distributed among the consumers enjoying firm allocation, including these IPPs.

It indicated that the IPPs would have to use alternative fuels during shortage, recalling the agreements it had signed with them which stipulated such an arrangement.