Gas supply via tankers to urea firms not feasible

May 06, 2015 02:30 am | Updated 02:30 am IST - CHENNAI:

It is not technically possible to supply gas through floating storage and regasification unit (FSRU) or gas tankers to high-cost naphtha-based fertilizer firms in the South, Union Minister of State for Chemicals and Fertilizers Hansraj Gangaram Ahir said in Lok Sabha on Tuesday.

According to a PIB press release, an analysis was carried out by the Department of Fertilizers regarding supply of gas through FSRU and gas tankers to three naphtha-based firms to produce urea and also to reduce the cash outflow by way of subsidy.

Mr. Ahir said that it would take at least 24 months to commence supply of gas through tankers or FSRU to three fertilizer firms, and, hence, it was not feasible. The other alternative was supplying through pipeline.

Recently, the Centre had asked three firms, including Madras Fertilizers, Mangalore Chemicals and SPIC to switch over to gas instead naphtha and also examine the availability of gas supply and gas pipeline connectivity to their respective units.

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