GAIL has assured Andhra Pradesh that it would supply 2.5 million standard cubic meters per day of re-gasified liquefied natural gas.
This supply of 2.5 mmscm per day would help generate 500 MW of additional power from gas-based independent power producers in the State, who are now starved of gas supplies.
The Chairman and Managing Director of GAIL, Mr B.C. Tripathi, assured to supply additional gas to the Andhra Pradesh Chief Minister, Mr N. Kiran Kumar Reddy, during their meeting held here today.
According to a statement from the Chief Minister’s Office, Mr Reddy directed the State Energy Department to follow up on the assurance given by the GAIL Chairman.
The interaction with GAIL in the presence of Mr Ganta Srinivasa Rao, Minister for Infrastructure and Investments, Mr S. Narayana, Managing Director of AP Gas Distribution Corporation and other officials centred around issues relating to the current demand-supply mismatch and the future outlook.
They also explored other possible options to tide over mismatch in gas supply leading to huge capacity of gas plants lying idle.
The State has installed capacity of 2,770 MW of gas plants and barely 1,170 MW is in operation due to gas supply shortage. In addition, more than 2,400 MW of new gas-based capacity is available for commissioning. These are struck due to inadequate gas supply from the Krishna-Godavari basin fields.
In fact, the State is faced with a power deficit of 20 per cent power today due to demand supply gap. The hydel projects are unable to generate due to low reservoir levels and the gas plants have been hit due to natural gas shortage aggravating the power situation.