Deepak Fertilisers protests threat to cut gas supply

The gain made in manufacturing phosphatic and potassic (P&K) fertiliser using cheaper gas was to be recovered from these units

With the government threatening to cut KG-D6 gas supply to Deepak Fertilisers and Petrochemicals Corporation (DFPCL), the company has protested against any such move.

Earlier, the ministry of chemicals & fertilizers had written to the petroleum ministry seeking immediate stoppage of 0.5 million standard cubic metres a day (mscmd) of gas from Reliance Industries to Deepak Fertilisers.

Last year, the Empowered Group of Ministers had asked the fertiliser ministry to calculate the gains made by companies using KG-D6 gas in manufacturing fertilisers other than urea.

The gain made in manufacturing phosphatic and potassic (P&K) fertiliser using cheaper gas was to be recovered from these units.

A similar proposal to stop priority gas supply to Gujarat State Fertilizer Corp and Rashtriya Chemicals and Fertilizers has not been processed since there are government companies.

Fertiliser plants facing supply cut will have to substitute domestic gas with costlier imported liquefied natural gas. The total domestic gas supply to urea-making fertiliser plants is 31.5 mscmd.

Of which 0.5 mscmd gas is being consumed by P&K plants.

The fertiliser ministry was, in fact, preparing a note on the impact of gas use on the P&K sector for the EGoM’s specific decision.