Short Supply of Natural Gas for Fertiliser Production




Short Supply of Natural Gas for Fertiliser Production 

The Minister of State for Chemicals and Fertilizers Shri Hansraj Gangaram Ahir has said in written replies in Lok Sabha today that Domestic Natural Gas is not available as per the requirement of the domestic fertilizer/industry.  However, the gap between the requirement and domestic production of various fertilizers units is met through imported Natural Gas.


The Government has taken several steps to improve the availability of gas which inter-alia include revision in the price of domestic natural gas, intensification of domestic exploration & production activities through New Exploration Licensing Policy (NELP) rounds, development of shale gas policy framework, research and development of gas hydrate resources in the country, import of Liquefied Natural Gas (LNG), exploring possibility of transnational gas pipelines, clearance for exploration and development of some NELP blocks, exploration in the Mining Lease Area with certain conditions and acquisition of overseas oil and gas assets.  The additional availability of domestic natural gas shall be allocated keeping in view the demand and the prevailing Gas Utilization policy of the government.

Moreover, to ensure the supply of domestic gas to the existing fertilizer units, Department of Fertilizers takes up the matter with Ministry of Petroleum & Natural Gas on regular basis.  Due to limited supply of domestic gas, the proponents of new fertilizers units have been directed to tie up gas supply with gas supplying agencies as per their commercial interests. 

            The Gas and Coal based fertilizer plants along with its location which are operating in the country are as under: -

S. No.
Name of the units
Location
1.
Indian Farmers Fertilizers Cooperative Limited-Phulpur
Uttar Pradesh
2.
Gujarat Narmada Valley Fertilizers & Chemical Limited
Gujarat
3.
National Fertilizers Limited – Bhatinda
Punjab
4.
National Fertilizers Limited - Panipat
Punjab
5.
National Fertilizers Limited – Naya Nangal
Punjab
6.
Shriram Fertilizers & Chemicals Limited
Rajasthan
7.
Kanpur Fertilizers & Cement Limited
Uttar Pradesh

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New Investment Policy for Fertilizer Units 


The Minister of State for Chemicals and Fertilizers Shri Hansraj Gangaram Ahir has said in a written reply Lok Sabha today that as of now, this department has received twelve Revamp, Greenfield and Brownfield proposals from the project proponents based on the New Investment Policy – 2012 and amendment thereof.  The list of the proposals is:

S. No.
Company
Projects
Ownership
State
1.
Zuari Agro Chemicals Limited
Revamp of Ammonia-Urea project at Zuarinagar.
Private
Goa
2.
IGFL-Jagdishpur
Brownfield Expansion urea project at Jagdishpur.
Private
Uttar
Pradesh
3.
CFCL-Gadepan
Brownfield of Ammonia-Urea units at Gadepan-Kota.
Private
Rajasthan
4.
GNVFC-Bharuch
Brownfield Ammonia-Urea project at Bharuch.
State JV
Gujarat
5.
GSFC-Vadodara
Greenfield Ammonia-Urea project at Dahej.
State PSU
Gujarat
6.
MATIX Fertilizers & Chemicals ltd.
Brownfiled Ammonia-Urea Fertilizers Complex at Panagarh. 
Private
West Bengal
7.
RCF-Thal
Brownfield Ammonia-Urea Expansion project at Thal.
CPSU
Maharashtra
8.
FACT-Kochi
Brownfield Ammonia-urea project at Udyogamandal, Kochin.
PSU
Kerala
9.
Kanpur Fertilizers & Cements Limited
Brownfield Project at Panki, Kanpur.
Private
Uttar
Pradesh
10
Bharat Coal Chemicals Ltd .
Coal Gasification based Ammonia and urea project, Paradip.
Private
Odisha
11.
Nagarjuna Fertilizers & Chemicals Ltd.
Brownfield Project at Kakinada, Andhra Pradesh.
Private
Andhra
Pradesh
12.
Krishak Bharati Cooperative Limited
Brownfield Project at Hazira, Gujarat.
Cooperative
Gujarat






















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Joint Venture Fertilizer Projects 


The Minister of State for Chemicals and Fertilizers Shri Hansraj Gangaram Ahir has said that India’s dependence on import at present is to the extent of 25% in Urea, 90% in phosphates and 100% in Potash. In a written reply in the Lok Sabha today, he said considering these facts the Government has been encouraging Indian companies to establish Joint Ventures in countries which are rich in fertilizer resources such as gas, rock phosphate and potash. List of JVs between Indian companies abroad is -

S. No.
JV Project-Country
JV participants with
equity %
Product and the Project
status

1.
Oman India Fertilizer Co.(OMIFCO), Oman
Oman Oil Co. (OOC-50%), IFFCO (25%) & KRIBHCO (25%)
16.52 lakh MT Urea & 2.48 lakh MT Ammonia.
Production started in the year 2006.

2.
ICS Senegal, Senegal
ICS Senegal and IFFCO consortium
5.5 lakh MT phosphoric acid. 
Production already started.

3.
JPMC-IFFCO JV, Jordan
JPMC & IFFCO
4.8 lakh MT Phosphoric acid. The commercial production is expected to start by end of December, 2014.

4.
IMACID, Morocco
OCP (50%) – Morocco, Chambal (25%) & TCL
(25%)-India

4.25 lakh MT phosphoric acid. Not yet operationalized.
5.
Tunisia-India Fertilizer
Company (TIFERT),Tunisia
GCT (Tunisia), CFL (Now CIL) & GSFC (India)
GCT-70%, CIL-15% and GSFC-15%.

3.60 lakh MT of Phosphoric acid.  Commercial production has started.

























There has been substantial saving on foreign exchange through these JV projects. The total foreign exchange saving in the last 10 years by importing Urea from OMIFCO, a JV between Oman Oil Co. & IFFCO/KRIBHCO is around Rs.14, 700=00 Crores.

These long-term agreements by fertilizer companies will ensure assured supply of fertilizers/raw materials in the country and price preference as per the agreements to the companies, Shri Ahir added.    

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Short Supply of Natural Gas for Fertiliser Production Short Supply of Natural Gas for Fertiliser Production Reviewed by Ajit Kumar on 6:58 AM Rating: 5

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