Welcome gas supplies for fertiliser companies

Vol 16, PW 15 (21 Feb 13) Midstream & Downstream

Fertiliser and LPG producers can celebrate! The oil ministry is set to allocate them 4.88m cm/d of gas by end-February.

Junior ministry officials wrote an internal note on February 12 (this month) recommending fresh gas allocations from six ONGC offshore marginal fields. “This gas is being allocated in line with the government's gas utilisation policy which gives top priority to the fertiliser sector,” says a ministry official.

“We have chosen fertiliser producers recommended by the fertiliser ministry.” Five fertiliser companies will get gas from ONGC to plug shortfalls in their APM or subsidised gas supplies.

Aditya Birla group company Indo Gulf will receive 135,000 cm/d at its Jagdishpur factory near Lucknow in Uttar Pradesh; KK Birla group company Chambal Fertilisers will take 210,000 cm/d at Gadepan in Rajasthan; Tata Chemicals will take 200,000 cm/d at Babrala in Uttar Pradesh; SFC Fertilizer will get 20,000 cm/d at Kota in Rajasthan; and KRIBHCO will take 350,000 cm/d at Hazira in Gujarat. These gas allocations will come as welcome relief to companies who would otherwise be forced to turn to expensive R-LNG.

Another four fertiliser factories will also get gas allocations to meet their 'new demand': National Fertilizers is to get 900,000 cm/d for its Bhatinda factory in Punjab, 900,000 cm/d for its Panipat factory in Haryana and 1m cm/d at its Nangal factory in Punjab; Gujarat Narmada Valley Fertilizers will receive 950,000 cm/d at Bharuch in Gujarat. Finally GAIL will take 220,000 cm/d at its LPG factories at Vijaipur in Madhya Pradesh as well as Vaghodia and Gandhar in Gujarat.

Ministry officials have rejected ONGC's demand for 1.95m cm/d at its C2+ extraction facility at Dahej in Gujarat as ONGC's demand is 'new'.