BL reported that availability of Reliance D6 gas for power and fertilizer sectors in Gujarat coupled with consumption of spot LNG by Reliance’s Jamnagar facility led to a 40% rise in the volumes transported through the Gujarat State Petronet system between April and June. GSPL is the gas transportation arm of the state run GSPC group.

According to sources, from 21 million standard cubic meter of gas a day in April, GSPL is now transporting over 30 million standard cubic meters per day. Compared with March, the volume has increased nearly one and half times. Higher volumes yield higher transportation fees for GSPL.

Sources said that “All State power companies such as Gujarat Paguthan, Gujarat Industrial Power, Gujarat State Electricity and Gujarat State Energy Generation have switched from liquid fuel or spot LNG to D6 gas. Allocation to Torrent Power nearly trebled to 3 million standard cubic meters per day.

However, RIL currently consumes 4.5 million standard cubic meters per day to 5 million standard cubic meters per day of spot LNG through the GSPL pipeline network for use as feedstock for its petrochemicals facility at Jamnagar.

On the contrary, the consumption of spot LNG by GSPC a gas aggregator has come down from 7 million standard cubic meter per day in March to a little over 3 million standard cubic meter per day. GSPC procures gas for supplies to a wide range of consumers in the State.

According to sources, it produced one spot LNG cargo in June and has not booked any for July delivery. Traditionally increased demand for power leads to a rush for spot LNG in Gujarat during the summer but the situation is different this year.

(Sourced from Business Line)