New Delhi: The Centre has allowed swapping of KG-D6 gas presently supplied to the units of Rashtriya Chemicals and fertilizers (RCF) in Maharashtra with Regasified Liquid Natural Gas (RLNG), which means supply of additional gas volume to the tune of 2.2 MMSCMD to Andhra Pradesh and Telangana State as result of which 450 MW power is generated from the Gas Independent Power Producers (IPP). 

Telangana State will have a share of 242 MW (53.89%) and AP share will be about 208 MW (56.11%). Department of Fertilizers, Ministry of Chemicals and Fertilizers’ approval of this 2.2 MMSCMD (swapping of KG-D6 gas) announced this development citing that IPPs located in AP and Telangana.

The two Telugu States -- Telangana and Andhra Pradesh -- have pipeline connectivity with RGTILs East West pipeline, whereas the RLNG terminals operational as on date are located on the western coast of the country. Further, even though East West pipeline of RGTIL provides physical connectivity of eastern part but as communicated by RGTIL, it is not possible for RLNG to flow from western parts of India to AP. Therefore, direct RLNG supply to customers in AP and Telangana is not possible and can only be achieved through swapping of gas. 

GAIL (India) Ltd will enter into necessary contractual arrangements with RCF, RGTIL and AP IPPs and Telangana IPPs for supply of RLNG. The press release also mentions that this will mitigate the power shortage in Telangana state and would benefit the farmers having 18.62 lakh pump sets in saving rabi crops and unscheduled power cuts; and also helps AP to tide over power deficit.