Inability of Rajasthan Rajya Vidyut Utpadan Nigam to draw the contracted quantity of gas from SGL gas field in Block RJ-ON/6 is affecting the production from the field. In a letter to the petroleum ministry, Focus Energy, the operator of the Block, informed that Rajasthan RRVUNL not being taking the contracted quantity is the reason for shortfall in the targeted production of gas from the field.

SGL Consortium had contracted with GAIL for supply of 33.5 mmcf per day natural gas for further supplies to ultimate buyer being RRVUNL for their Ramgarh Power Plant located in Jaisalmer, Rajasthan. There were significant delays in commissioning of 110 MW Stage-III power plant by RRUVNL, due to which the enhanced quantity of gas production remained suspended till April 2013.

Focus Energy, the operator of the Block, informed the petroleum ministry that even after commissioning of Stage-III power plant, RRUVNL has not able to take the contracted volumes consistently as the power plant turbine has been experiencing frequent maintenance and shutdowns.

The Company informed that GAIL has laid pipeline from its Consortium’s gas processing facility to the power plant and the production has to be curtailed from the wells considering the requirement of gas for Ramgarh power plant. There have been frequent requests from Ramgarh power plant through GAIL for substantial and abrupt reductions in the volumes of gas. The Company has informed GAIL and RRUVNL that abrupt requests are resulting in adversely affecting the health of the gas wells.

In view of the scenario, Focus Energy has requested the intervention of petroleum ministry so that the Company is able to draw sustained and stable production from the wells so that the health of gas reservoir is not adversely impacted and the SGL consortium is able to receive contracted revenues.

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