Fertilizer Min seeks over 43 mmscmd of RIL gas

NEW DELHI: Joining the scramble for natural gas from the Reliance Industries' fields, the Fertilizer Ministry has sought over 43 million cubic meters a day of additional gas to revive the closed urea making plants.

Fertilizer Secretary Atul Chaturvedi has written to Cabinet Secretary KM Chandrasekhar demanding 43.47 mmscmd gas "to convert all existing non-gas based units to gas, revive closed urea units and for setting up of expansion projects."

"The onset of supplies of natural gas from (RIL's) KG-D6 has helped to meet the existing shortfall of natural gas for the fertilizer sector," he wrote on September 8.

Urea manufacturing plants were accorded top most priority by the Empowered Group of Minister (EGoM) deciding on the allocation of KG-D6 gas. 12 fertilizer firms got 15 mmscmd.

Chaturvedi said 8.05 mmscmd of additional gas was needed in the current year to convert naphtha-based plants like the ones in Goa, Tuticorin, Mangalore and Manali. Next year, an additional 3.75 mmscmd would be needed to convert fuel oil based plants while 13.9 mmscmd would be needed for expansion projects during 2011 to 2013. An additional 17.6 mmscmd gas would be required for reviving eight closed plants.

Power Ministry has already sought 80 mmscmd of gas while RIL wants 18-19 mmscmd for its refinery and chemical plants.

RIL's KG-D6 fields, which are currently producing 36-37 mmscmd of gas, will hit a peak output of 80 mmscmd by year end.