Mar

28

Reliance signs Gas Sales & Transportation contracts with 12 Fertilizer companies

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Reliance Industries has signed gas sales and transportation contracts with 12 fertilizer companies to sell about 15 million standard cubic metres a day (mmscmd) of gas from its eastern offshore KG-D6 fields.

These fertilizers companies are: Chambal Fertilizers Indian Farmers Fertilizer Cooperative, Krishak Bharati Co-operative, Gujarat Narmada Valley Fertilizers, Gujarat State Fertilizers and Chemicals (GSFC), Nagarjuna Fertilizers, Tata Chemicals, and Rashtriya Chemicals and Fertilizers (RCF).

The same fertilizers companies also signed a separate Gas Transportation Agreement with Reliance Gas Transportation India for transporting the gas through its pipeline in Kakinada in Andhra Pradesh to Baruch in Gujarat.

The gas supply will start from mid-April, and the firms will pay Reliance a marketing margin of 13.5 cents per million British thermal units (mmBTU), said Satish Chander, Director General of Fertiliser Association of India. However, the margin is in addition to the government-set price of $4.2 per mmBTU for the gas.
[source: Asian Cerc]