India to produce 7m tonnes/year more urea with RIL gas deal

27 March 2009 16:11  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s 15 gas-based urea plants will produce an additional 7m tonnes/year after entering into a deal with Reliance Industries Limited (RIL) to increase feedstock supply, the company said on Friday.

RIL has signed separate gas sales and purchase agreements (GSPAs) with 12 companies that own the 15 plants located across the country. The five-year agreements will see the supply of 15m standard cubic metres per day (MMSCMD) to the plants.

The company said gas supplies from its offshore field, in Kishna-Godavari basin off the coast of Andhra Pradesh State, would begin shortly.

RIL President & CEO (Petroleum) PMS Prasad said the additional urea production of 7m tonnes/year would reduce India’s dependence on imports and reduce fertilizer subsidy.

The fertilizer companies that signed the GSPAs include Tata Chemicals Limited, National Fertilizers Limited, Indian Farmers Fertiliser Cooperative Limited, Gujarat Narmada Valley Fertilizers Company and Gujarat State Fertilizers & Chemicals.

The GSPAs have been facilitated by the Indian government. Senior government officials were present at the agreement signing event on Friday.                     

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By: Naresh Minocha
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