Public sector undertaking Madras Fertilizers Ltd., (MFL) is exploring the possibility of using Krishnapatnam Port to transport imported gas as feedstock for producing urea. Talking to The Hindu , an official at MFL, who did not wish to be identified, said “We are weighing the option of moving natural gas from Krishnapatnam Port through cryogenic road tankers. Our board has already cleared the proposal. The talks are in initial stages. It would take at least a year for them to set up storage tanks.”
Krishnapatnam port is situated about 150 km north of MFL’s plant. Andhra Pradesh-based KEI-Ros Petroleum & Energy is setting up an LNG import terminal at the port. It is also laying a 250 km gas pipeline connecting Nellore and Ennore, which is likely to be commissioned by December 2017. Simultaneously, MFL is also in discussions with Indian Oil Corp. (IOC) and Gas Authority of India (GAIL) to procure natural gas. IOC officials said that its proposed Ennore LNG terminal would become operational by early 2018.
GAIL’s Kochi-Koottanad-Mangaluru-Bengaluru pipeline would be ready by 2018. After making profits continuously for five years, MFL incurred losses for the first time during 2014-15, following the closure of naphtha-based ammonia and urea plants for three months.
