| Krishak Bharati Co-operative Ltd (Kribhco) will use liquified natural gas (LNG) as fuel for its capacity expansion project at Hazira.
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| The proposed Rs 1750 crore Hazira expansion project Phase - II is awaiting nod from the Cabinet Committee of Economic Affair (CCEA).
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| T R Chaudhary, director of operations of Kribhco at Hazira, told Business Standard, "LNG would be used along with the Bombay High natural gas we receive from GAIL."
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| The new project would add 3250 metric tonne per day of new capacity to Kribhco's existing capacity of 3200 tonne per day.
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| The expansion of project would also include 6,10,500 tonne of new ammonia plant.
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| Kribhco receives 3.6 mmscmd of natural gas for its ammonia plant as part of Urea project.
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| For the expansion, Chaudhary said Kribhco would require additional 2 mmscmd of gas for the proposed expansion and bulk of which would be used as LNG.
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| Kribhco is also eyeing more gas from Panna Mukta Tapti basin.
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| Chaudhary said, for the LNG required for the project would be sourced from various sources including that of Petronet LNG.
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| Hazira LNG of Royal Dutch/Shell has its LNG import and regasification terminal is just next to Kribhco's project and may also be considered as supplier of fuel for the expansion project.
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| Kribhco is also considering Krishna Godavary Basin gas as another option to meet part of its fuel requirement.
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| However, a lot would depend on the proposed pipeline connecting KG basin with the consumers like Kribhco on the west coast.
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| IFFCO, which is another cooperative major engaged in fertiliser production, switched to LNG, as fuel for urea production very recently following unprecedented rise in naphtha prices.
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| Kribhco on the other hand, had switched to LNG and natural gas to meet its existing fuel requirement almost six months ago, said Chaudhary.
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| With continuous rise in crude price and subsequent jump in prices of naphtha, Kribhco has now decided to go for LNG and natural gas even for its future expansion projects.
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| Kribhco is now waiting for the final node from the CCEA for the project.
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| The proposal is with CCEA for more than 10 months now.
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| EPC contractors like Snamprogetti, Toyo Engineering, Uhde, Tecnimont and Mitsubishi Heavy Industries have shown interest in the expansion project. Kribhco would opt for a 2:1 debt and equity ratio for funding the expansion project, where most of the funding would be generated through internal sources. |
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