KRIBHCO wants R-LNG for urea factory

Vol 17, PW 2 (22 Aug 13) News in Brief

Fertiliser producer KRIBHCO is tempted by GAIL's plans to import 5.8m t/y of LNG from the US from 2017.

KRIBHCO is talking to GAIL to source 2.4m cm/d of R-LNG on a long-term basis for its proposed gas-fired urea factory at Shahjahanpur in Uttar Pradesh. If KRIBHCO signs a GSPA with GAIL it will get R-LNG supplies under GAIL's import deals with the Sabine Pass and Cove Point liquefaction facilities in the US.

"Our plant should be commissioned by 2017 or 2018," says KRIBHCO. "By then GAIL will start getting LNG from the US.

" KRIBHCO subsidiary KRIBHCO Shyam Fertilisers (KSFL) is setting up the new Rs4132cr ($663m) urea factory, with a capacity to produce 3850 t/d, adjacent to its present 2620 t/d urea factory. KSFL has calculated a urea production cost of Rs13,655/tonne ($217) if the term R-LNG delivered price is $6.50/mmbtu.

KSFL is at present sourcing R-LNG from GAIL, BPCL, GSPC and Shell and Total's Hazira LNG.