Fertiliser cos advance annual plant shutdowns

Several fertiliser makers in the country are advancing their annual plant shutdown schedules amid liquefied natural gas (LNG) supply disruptions caused by the conflict in West Asia, company executives said.

"As supplies of LNG have been cut down, we are moving our annual shutdown for repair and maintenance work from April to mid-March," a leading urea manufacturer told ET, adding that the company had otherwise planned to replenish inventories and stock up for the upcoming kharif season in March.

LNG is the key raw material for producing ammonia, which is the main ingredient of urea.


"The government has also encouraged us to reschedule our shutdown plans" as the gas supply is low, another urea maker said.

The government has cut LNG supply to urea producers by as much as 40% as the US-Israeli war with Iran has severely disrupted gas imports from its largest supplier, Qatar.

"Since fertiliser plants cannot be operated below a certain capacity, any reduction of supply of natural gas below the required quantity may lead to stoppage of some plants," said a person aware of the matter.

Fertiliser consumption typically remains moderate during March, allowing the industry to replenish inventories and undertake routine maintenance operations at production facilities. They utilise the period for producing and stocking up for the kharif (monsoon) planting season, which accounts for more than half of India's foodgrain production.