KRIBHCO wants gas for Hazira plant

Vol 12, PW 7 (21 Aug 08) News in Brief

Gas-marketing companies can expect monthly purchase tenders from fertiliser firm Krishak Bharati Cooperative or KRIBHCO until D6 gas supplies become available.

PETROWATCH learns KRIBHCO issued a tender on August 18 seeking 900,000 cm/d of gas for its fertiliser plant in Hazira for September. “KRIBHCO has written to eight companies, among them GAIL, BPCL, IOC and Shell,â€‌ we hear.

The last date for bids is August 22. KRIBHCO tells us the contract was purposely kept short because few firms will enter deals for three months or a year, as it wants.

Industry sources believe KRIBHCO should not expect gas below $20/mmbtu. “Shell offered R-LNG to NTPC at $23/mmbtu (including charges and taxes) in a tender concluded last week,â€‌ a source said, noting the price was linked to curtailed supply from Petronet-LNG’s Dahej terminal.

KRIBHCO is hopeful of future supplies, as one of five companies that signed a price discovery â€کterm-sheet’ with Reliance for D6 gas last year.