Fertiliser Min voices concern over gas supply to urea units

The Fertiliser Ministry has expressed concern over supply of natural gas from Reliance Industries' KG-D6 fields to urea units after the Bombay High Court asked the Mukesh Ambani-led firm to supply maximum gas to younger brother Anil's firm.     

The Fertiliser Ministry is concerned over the fate of about 15 million cubic meters per day of gas allocated from the Krishna Godavari basin fields of RIL to 12 urea-making firms and has sought assured supplies.     

"We have written to the Petroleum Ministry expressing concern (on continued supplies)," Joint Secretary in the Ministry of Chemicals and Fertiliser Deepak Singhal said.     

The government had accorded priority to the fertiliser sector in the allocation of gas from KG-D6.     

"We have been allocated about 15 mmcmd. (As of now) there is no problem in getting that," he told a news conference called to announce the 100-day agenda of his ministry.     

Earlier this week, the fertiliser industry had voiced concern over Anil Ambani-run RNRL getting the maximum gas allocation after the Bombay High Court order and sought firm assurance from the government on uninterrupted supplies.     

"The industry is concerned after the judgement of the Bombay High Court according to which Reliance Natural Resources Ltd is to get 28 mmscmd of gas from the KG basin," Fertiliser Association of India had said in a letter to Fertiliser Secretary Atul Chaturvedi.

After fertiliser units, power plants were allocated 18 mmscmd of gas from the D6 field. RIL currently produces about 28 mmscmd, which would reach the planned 40 mmscmd initial output in July.     

The FAI projects another 12.7 mmscmd gas requirement for fertiliser plants that are currently using fuel oil or naphtha as feedstock.