India’s GNFC to divert gas from methanol to ammonia production

11 June 2012 12:14  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Gujarat Narmada Valley Fertilizers Co (GNFC) plans to further reduce run rates at its 290,000 tonne/year methanol plant to 30-40% next week, to divert its feedstock natural gas for ammonia production, a company official said on Monday.

The plant, which was restarted in early June after a scheduled maintenance, is currently running at 60-70% of capacity with two natural gas-based lines of the plant currently running, the official said.

The third line, which produces 300 tonnes/day using fuel oil as feedstock, was kept shut, the source said.

“The current ammonia plant is not running, but we’ll start it next week and we [plan to] divert the gas from methanol to ammonia,” the source said.

Diverting the gas for ammonia production would entail the shutdown of one of the two methanol lines that produces 600 tonnes/day in Gujarat, the source said.

Market participants said that a reduction in methanol supply should not affect the market as it is the monsoon season and demand coming from downstream formaldehyde sector is seasonally weak.

Methanol producers in India include Deepak Fertilisers and Petrochemicals and Rashtriya Chemicals and Fertilizers.

By: Heng Hui
+65 6780 4359

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