Reliance Industries (RIL) today signed gas sales and transportation contracts with 12 fertiliser firms who have been chosen to receive the first produce from the company's eastern offshore KG-D6 fields when they go on production in a few days from now.
Indian Farmers Fertiliser Co-op (IFFCO), Krishak Bharti Co-op (Kribco), Tata Chemicals and Indo Gulf Fertiliser were among the companies which signed the Gas Sales and Purchase Agreement with RIL for buying the KG-D6 gas at USD 4.20 per million British thermal unit price.
They signed a separate Gas Transportation Agreement with billionaire Mukesh Ambani-owned Reliance Gas Transportation India Ltd 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 Fertiliser Ltd, Chambal Fertiliser, Gujarat State Fertiliser, Rashtriya Chemical Fertiliser, Nagarjuna Fertiliser, GNFC and Sriram Fertiliser.
KG-D6 will start producing gas by month-end and initial volumes would go to meet the fuel deficit at 15 urea making plants operated by 12 fertiliser companies. A total of 15.35 million cubic meters per day of gas would go to fertiliser plants, an official said.
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 Fertiliser in Andhra Pradesh.
The official said on the HVJ, National Fertilisers will get 0.65 mmcmd, Chambal Fertiliser 1.15 mmcmd, and Indian Farmers Fertiliser Co-op's Aonla and Phulpur units in Uttar Pradesh 1.75 and 0.52 mmcmd, respectively. Besides, Khribco Sahajahanpur will get 0.978 mmcmd, Tata's Babrala plant 0.88 mmcmd, Indo Gulf Fertiliser's Jagdishpur plant 0.48 mmcmd and Shriram Fertilisers' Kota plant 0.62 mmcmd.
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Among non-HJV customers, Krishak Bharti Coop's Hazira unit will get 1.37 mmcmd, Gujarat State Fertilisers and Chemicals' Vadodara plant 0.72 mmcmd, Rashtriya Chemical Fertiliser's Trombay unit 0.95 mmcmd and Thal 2.1 mmcmd, Nagarjuna Fertiliser 1.55 mmcmd, GNFC 0.342 mmcmd and IFFCO's Kalol plant would get 1.3 mmcmd.
Deepak Fertilizer's demand for 0.178 mmcmd KG-D6 gas and BVFC's 0.23 mmcmd claim were rejected as the initial gas was to go only to urea making units.
The delivered price, including taxes and transportation charges, of RIL gas in Andhra Pradesh would be USD 5.34 per mmBtu while in Maharashtra it would cost USD 5.87. In Gujarat it would cost USD 5.87 and along the HVJ pipeline USD 6.21.