GAIL to sell 4.88 mscmd gas to fertiliser units

Gail India Ltd, the country’s largest gas distributor, will sell 4.88 million standard cubic metres per day (mscmd) of natural gas per day to four fertiliser units in the country.

The company signed the contracts for the sale of the gas today with Urvarak Videsh Ltd (UVL), the owner of one of the four fertiliser plants at Barauni, and National Fertilisers Ltd (NFL) that owns the other three plants at Panipat, Bhatinda and Nangal. While the Barauni plant will be supplied 2.11 mscmd gas, the balance 2.77 mscmd gas will be sold to the three units of UVL.

Gas supplies will commence once the fertiliser units are revived. The revival of the Barauni unit is slated to be completed by 2012-13, while the conversion of the NFL plants is to be completed by 2011.

“The contract period is 15 years from the date of commencement of supplies. Gas for the supply will be sourced from sources like the KG basin or other Nelp blocks,” according to a statement released by the company.