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Rajahmundry Gas Pipeline Fire: 14 Killed, Lanco Power Generation Hit

The massive blast of gas pipeline at Rajahmundry on Friday morning hours has left 14 people killed and massive fire surrounding the area and hitting the electricity production at the 1,466 megawatt Kondapalli power plant of the Lanco Group.

Lanco Group, which operates the plant in Andhra Pradesh, is now sourcing gas from an alternate line. The pipeline is being operated by state-owned energy company GAIL (India) Ltd (GAIL.NS).

The fire incident occurred a day after the government imposed an additional penalty of $578 million on Reliance Industries for producing less-than-targeted natural gas from its eastern offshore KG-D6 block. The current blast will further erode the capacity of gas production in the basin.

Production from the main gas fields in the KG-D6 block has dropped to about a 10th of the planned 80 million standard cubic meters per day, making it non-viable as facilities often remain unutilised.

[gail pipeline blast, reliance, kg basin, Rajahmundry fire, killed, gas fire]

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