GITL signs transportation agreement with Ramagundam Fertilizers for 20 years

Under the agreement, GITL will supply 2 mmscmd of natural gas from Mallavaram of Andhra Pradesh to RFCL's plant at Ramagundam

GSPL India Transco Ltd (GITL), a subsidiary of Gujarat State Petronet Ltd (GSPL), has signed a Gas Transportation Agreement (GTA) with Ramagundam Fertilizers and Chemicals Ltd (RFCL) on July 8, 2016 for a period of 20 years.

Under the agreement, GITL will supply two million metric standard cubic meters per day (MMSCMD) of natural gas from Mallavaram of Andhra Pradesh (AP) to RFCL's plant at Ramagundam in Telangana through Mallavaram-Bhopal-Bhilwara-Vijaipur Natural Gas Pipeline (MBBVPL) being developed by GITL.

The company in a press release stated that, MBBVPL project would cover a distance of 1,881 km and connect AP, Telangana, Maharashtra, Madhya Pradesh, Rajasthan and Gujarat. The pipeline shall supply clean energy in the form of natural gas to Industrial, Commercial, Transport and Residential segments and thus prove to be energy lifeline to regions enroute.

GITL has been authorised to develop MBBVPL by Petroleum and Natural Gas Regulatory Board (PNGRB) and is a joint venture of GSPL, IOCL, BPCL and HPCL with GSPL being the lead promoter.

RFCL is joint venture Company formed by National Fertilizers Ltd (NFL), Engineers India Ltd (EIL) and Fertilizer Corporation of India Ltd (FCIL) to develop fertilizer plant to produce ammonia and urea at Ramagundam.

It may be mentioned here that this fertilizer plant at Ramagundam has been revived as part of larger efforts of government of India to boost domestic availability of urea through revival of closed fertilizer units.