Andhra will be world capital of natural gas: Deora

Andhra will be world capital of natural gas: Deora

Friday, 06 April 2007, 05:00 Hrs
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Hyderabad: Andhra Pradesh will become the world capital of natural gas thanks to the Krishna Godavari (KG) basin, Union Minister for Petroleum and Natural Gas Murli Deora said on Thursday.

He said that there was so much gas in the KG basin of the state that in two to three years there will be no shortage of gas for the industries and power projects.

He was speaking after launching '5 percent ethanol bled petrol' programme and laying the foundation for the CNG mega station here in the evening.

Earlier, during his meeting with Chief Minister Y.S. Rajasekhara Reddy, Deora said that natural gas from the KG basin will be supplied by Reliance and other private developers from June 2008.

The chief minister wanted the petroleum ministry to ensure that no portion of the gas produced from the KG basin be allowed to be taken out of the state without first meeting the entire requirement of Andhra Pradesh.

Deora announced that about 20 million domestic consumers of cooking gas will get piped supply in three years and that LPG cylinders would be diverted to rural areas to further increase the supply there.

Rajasekhara Reddy and Deora flagged off the first tanker carrying the ethanol blended petrol marking the launch of the much awaited programme in the country aimed at bringing down the petroleum import bill.

Expressing concern over the increase in crude prices in the international market to $66 per barrel, Deora said that the government was doing everything possible to ensure that the prices of kerosene and LPG do not go up.

On Rajasekhara Reddy's demand for supplying the natural gas to Andhra Pradesh at the minimum price possible, Deora said that it was not possible to reduce the price any further from the present level of $2-4.

He said that the pricing was the biggest hindrance in negotiations on the Iran-Pakistan-India gas pipeline project. He said if Iran charges 4 dollars 25 cents, Pakistan charge one and a half dollars and another 50 cents are added in India, the gas price will go up to around $7 which nobody can afford.
Source: IANS
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