Short Supply of Natural Gas for Fertiliser Production

OREANDA-NEWS. The Minister of State for Chemicals and Fertilizers Shri Hansraj Gangaram Ahir has said in written replies in Lok Sabha today that Domestic Natural Gas is not available as per the requirement of the domestic fertilizer/industry.  However, the gap between the requirement and domestic production of various fertilizers units is met through imported Natural Gas.

The Government has taken several steps to improve the availability of gas which inter-alia include revision in the price of domestic natural gas, intensification of domestic exploration & production activities through New Exploration Licensing Policy (NELP) rounds, development of shale gas policy framework, research and development of gas hydrate resources in the country, import of Liquefied Natural Gas (LNG), exploring possibility of transnational gas pipelines, clearance for exploration and development of some NELP blocks, exploration in the Mining Lease Area with certain conditions and acquisition of overseas oil and gas assets.  The additional availability of domestic natural gas shall be allocated keeping in view the demand and the prevailing Gas Utilization policy of the government.

Moreover, to ensure the supply of domestic gas to the existing fertilizer units, Department of Fertilizers takes up the matter with Ministry of Petroleum & Natural Gas on regular basis.Due to limited supply of domestic gas, the proponents of new fertilizers units have been directed to tie up gas supply with gas supplying agencies as per their commercial interests. 

The Gas and Coal based fertilizer plants along with its location which are operating in the country are as under: -