07 July 2008 04:59 [Source: ICIS news]
SINGAPORE (ICIS news)--India’s largest methanol refinery Gujarat Narmada Valley Fertilizers Co (GNFC) has delayed the start-up of its new 450 tonne/day production line for the third time due to a technical glitch, a company source said late on Friday.
The Bharuch plant, which was previously rescheduled to start on 27 June, is expected to start up within two weeks after further tests, he added.
The demand-supply situation in India was balanced as the company’s downstream acetic acid plant was also shut down and was not consuming any methanol, the source said, adding that the company had sourced for methanol to fulfil its contractual obligations with some customers.
“I hope the new restart date would be as promised,” a market observer said, adding that GNFC has postponed the start-up more than once since early June. “There are rumours that GNFC may need up to four months to start up the line and if that were really the case, supply would definitely be tightened.”
Indian methanol prices were at $400-420/tonne CFR (cost and freight) West Coast India (WC India) on Friday, according to global chemical market intelligence service ICIS pricing. Domestic prices were at rupees (Rs)21-22/kg ($0.49-0.51/kg)ex-tank, up Rs1/kg from the week before.
Other methanol producers in India include Deepak Fertilizers and Rashtriya Chemicals and Fertilizers (RCF). Most Indian methanol production is consumed locally.
($1 = Rs43.14)For more on methanol visit ICIS chemical intelligence
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