Urgently looking for 1.4m cm/d, says GNFC

Vol 16, PW 3 (23 Aug 12) Midstream & Downstream

Gujarat Narmada Valley Fertilisers (GNFC) is almost ready to take an additional 1m cm/d of gas at its urea factory in the Bharuch district of Gujarat, replacing liquid fuels like Low Sulphur Heavy Stock (LSHS) and Furnace Oil (FO).

State-owned GNFC produces 636,900 t/y of urea at Bharuch using 1.4m cm/d of domestic gas in addition to some LSHS and FO. But this month (August) Larsen & Toubro completed installation of equipment to convert the Bharuch factory to using only gas.

By next month (September) GNFC will be ready to start taking the additional 1m cm/d but has yet to source supplies. “As a priority sector we’re hoping for a gas allocation from the next EGoM meeting (yet be fixed),” says a company source.

“We expected an allocation at the last meeting on February 24 but it did not happen.” GNFC, he adds, is ready to take R-LNG at Bharuch in the unlikely event it is denied a government allocation.

“In May we received proposals for 1m cm/d of R-LNG from five companies, including GAIL and GSPC,” says GNFC. “But we still believe we can get domestic gas.

” Yet GNFC says it will definitely use R-LNG for an additional 400,000 cm/d needed from December at another of its production facilities: a chemicals facility at Dahej producing toluene di-isocyanate, an essential ingredient in the production of flexible foam for airline seats and bedding. By then this factory will see capacity expanded from 15,000 t/y to 65,000 t/y.

Since April 2009, GNFC is receiving 1m cm/d of D6 gas at Bharuch and 400,000 cm/d of ONGC gas through GAIL since 1986. All GNFC feedstock costs are reimbursed with generous government subsidies.