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RIL in pact with 12 fertilizer cos

NEW DELHI: Mukesh Ambani owned Reliance Industries Ltd. (RIL) on Friday signed gas sales and transportation contracts with 12 fertilizer companies that have been chosen to receive the first produce from the company’s eastern offshore KG-D6 fields.

Indian Farmers Fertiliser Co-operative (IFFCO), Krishak Bharti Co-operative (Kribco), Tata Chemicals and Indo Gulf Fertilizer were among the companies that signed the gas sales and purchase agreements with RIL for buying the KG-D6 gas at $4.20 per million British thermal unit price. They signed a separate gas transportation agreement with Reliance Gas Transportation India for transporting the gas through its 1,396-km East-West pipeline from Kakinada in Andhra Pradesh to Baruch in Gujarat.

Others who signed the twin contracts included National Fertilizer, Chambal Fertilizer, Gujarat State Fertilizer, Rashtriya Chemical Fertilizer, Nagarjuna Fertilizer, GNFC and Sriram Fertilizer. KG-D6 will start producing gas by early April and initial volumes would go to meet the fuel deficit at 15 urea making plants operated by the 12 fertilizer companies.

Eight urea plants on Hazira-Vijaipur-Jagdishpur (HVJ) pipeline of GAIL that transports fuel from Gujarat coast to North would get 7.026 mmcmd of RIL gas, while 6.689 mmcmd would go to Kribco and GSFC’s units in Gujarat, Rashtriya Chemical’s Maharashtra plants and Nagarjuna Fertilizer in Andhra Pradesh. On the HVJ, National Fertilizers will get 0.65 mmcmd, Chambal Fertilizer 1.15 mmcmd, and IFFCO’s Aonla and Phulpur units in Uttar Pradesh 1.75 and 0.52 mmcmd, respectively.

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