In a strategic move aimed at changing over from naphtha to LNG as the feedstock, the Fertilizers and Chemicals Travancore (FACT) has decided to go in for spot purchase of LNG from Petronet’s new terminal. A gas purchase agreement would be signed with GAIL, IOC and BPCL in this regard. The present decision is to go for spot purchase of LNG for 60 days. Regarding the long term purchase of gas, discussions would be held with oil companies and Petronet LNG, a press release said.
The spot purchase price of LNG is approximately $19 dollars per MMBTU. This consists of 14.5 per cent VAT also. FACT has requested the state government to waive this tax considering the heavy impact of the high price of LNG on the operations of the company.
FACT has already made the necessary modifications to its ammonia plant where LNG will replace naphtha as the feedstock. This marks a major milestone in the history of the company which is reeling under the financial crisis for the last two decades. LNG will also be used in the boilers of the company, where presently furnace oil is used as the fuel. of the Irwin Road from Ayurvedic College Circle, said MCC commissioner Ramesh today in a release.
