GNFC approaches Reliance for gas supply

After getting a go ahead from the Centre for converting urea units into gas-based units, the Gujarat Narmada Valley Fertiliser Corporation (GNFC) is in talks with gas suppliers for a regular supply of one million standard cubic metres per day.

According to company officials, they are talking to the Gujarat State Petroleum Corporation (GSPC) and Reliance Industries Limited (RIL) for the supply. “The suppliers have given the assurance for gas supply, as fertiliser is on the priority list of the government. The government will ensure that we get the required amount of gas,” said a GNFC official seeking anonymity.

The official added, “Talks are also on with Reliance Industries (RIL) for supply to the urea plant.” GNFC urea plant will be the first one in the country to use this technology.

The total project cost will be around Rs 1,215 crore. The funds would come from internal accrual and loans, which the government will reimburse later. The contract to build new units in the existing GNFC complex has been assigned to L&T on the turnkey basis.

The clean feed stock of gas compared to fuel oil will ensure environment-friendly production. “This is the reason we are converting it into gas-based plant,” said the official.

Also, the conversion will reduce energy consumption in manufacture of ammonia, said sources. Besides, moving to gas-based units will result in a saving of about Rs 2,000 for every tonne of urea produced. Officials are also reviewing whether the conversion from oil to gas will bring down the emissions in order to earn them carbon credits.

Source:http://www.indianexpress.com/news/GNFC-approaches-Reliance–GSPC-for-gas-supply/575984

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