Reliance Industries Limited (RIL) has signed the Gas Sales and Purchase Agreement (GSPA) with the customers in fertilizer sector for supply of natural gas to be produced from the KG-D6 block. The GSPAs were signed with 12 customers in the fertilizer sector for supply of approximately 15 million standard cubic meters (mmscmd) natural gas at 15 different urea manufacturing facilities.
The GSPAs were executed in the august presence of Shri. RS Pandey, Secretary (MoPNG), Shri. Atul Chaturvedi, Secretary (Department of Fertilizers) and senior officials of MoPNG and Department of Fertilizers.
The key highlights are:
- The duration of contract under the GSPA is 5 years.
- The gas price in GSPA is as per the formula approved by the Government.
- The supply of gas is expected to commence shortly. East-West Pipeline built by Reliance Gas Transportation Infrastructure Limited (RGTIL) would be used to transport gas from KG-D6 block to the fertilizer companies, by inter-connecting with pipelines of GAIL and GSPL.
- The fertilizer companies also signed Gas Transportation Agreement (GTA) with RGTIL.
The following fertilizer companies will be supplied natural gas from KG D6:
Nagarjuna Fertilizers & Chemical Limited, Rashtriya Chemicals & Fertilizer Limited, IFFCO, KRIBHCO, GSFC, GNFC, Tata Chemicals Limited, National Fertilizer Limited, Chambal Fertilizer & Chemicals Limited, KRIBHCO Shyam Fertilizers Limited, IndoGulf Fertilizer & Shriram Fertiliser & Chemicals Limited.
Speaking on the occasion, Mr. PMS Prasad, President and CEO (Petroleum), RIL, said, “With the signing of GSPAs, KGD6 gas would reach all gas-based urea manufacturing units in India, and would eliminate the deficit in gas supply being currently faced by these units. The supply of natural gas to these units would result in additional production of approximately 7 million tones of urea per annum thereby reducing India’s import dependence and also reducing subsidies by the Government. We look forward to having a long-lasting and mutually beneficial relationship with the fertilizer companies.”
Reliance Industries Limited
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with a turnover of Rs. 1,39,269 crore (US$ 34.7 billion), cash profit of Rs. 25,205 crore (US$ 6.3 billion), net profit (excluding exceptional income) of Rs. 15,261 crore (US$ 3.8 billion) and net worth of Rs. 81,449 crore (US$ 20.3 billion) as of March 31, 2008.
RIL is the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 103rd amongst the world's Top 200 companies in terms of profits. RIL is amongst the 30 fastest climbers ranked by Fortune. RIL features in the Forbes Global list of the world's 400 best big companies and in the FT Global 500 list of the world's largest companies. RIL ranks amongst the 'Worlds 25 Most Innovative Companies' as per a list compiled by the US financial publication-Business Week in collaboration with the Boston Consulting Group.
