Gail?s RLNG supply to Iffco begins

GAIL (INDIA) Ltd, has commenced supplying re-gasified liquid natural gas (RLNG) through its newly-constructed 140 kms pipeline to Indian Farmers Fertilizer Cooperative Ltd, (IFFCO) at Phulpur in Allahabad district.

GAIL (INDIA) Ltd, has commenced supplying re-gasified liquid natural gas (RLNG) through its newly-constructed 140 kms pipeline to Indian Farmers Fertilizer Cooperative Ltd, (IFFCO) at Phulpur in Allahabad district.

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The RLNG is being supplied to IFFCO’s Phulpur unit through a ‘tap off’ point at the Hazira-Vijapur-Jagdishpur pipeline at Thulendi in the State.Sources in the Gail headquarters in New Delhi said IFFCO’s Phulpur plant was earlier running on naptha fuel. “This is also the first major ‘spurline’ project for a fertilizers unit co-ordinated by Gail’s Lucknow Zonal office to have been completed for distribution of gas in Uttar Pradesh”, sources said.

IFFCO is currently getting 1.75 mmsmd of RLNG for meeting its fuel requirements which is expected to be upgraded to 2.4 mmsmd within a year. The 18-inch diameter pipeline supplying RLNG would now help IFFCO plan out its expansion plans for augmenting the urea production capacity of its Phulpur unit from the current level of 3,700 metric tonnes (MT) to 4,300 MT after getting necessary approvals from the Union Government, sources said.Similarly, IFFCO could also plan out augmenting its Ammonia production capacity in future. The RLNG is being made available to IFFCO on a long-term negotiated price mechanism till 2008. Thereafter, RLNG price is expected to be revised.