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power sector: Govt mulls cutting domestic gas supply to power sector, sources tell ETNow

The central government may cut domestic gas supply to the power sector in order to push the city gas distribution network, ET Now reported on Friday citing sources.

This comes following the low plant load factor of 13%.

The Oil Ministry held an emergency meeting on increased gas demand in the City Gas Distribution (CGD) network.

In the past three months, the daily gas demand in the CGD has increased by 1 million standard cubic feet per day (MMSCMD).

Around 10 power plants with 8000MW capacity operate on domestic Administered Pricing Mechanism (APM) gas.

This move might lead to a drop to 10% from 15% in allocation to the fertiliser sector. Domestic gas allocation to the LPG industry is unlikely to be impacted.

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