Question : Gas Based Urea Production

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether the Government has conducted any study to determine that gas based urea production is cheaper than Naphtha based urea production;

(b) if so, the details thereof and if not, the reasons therefor along with the number of gas based urea production plants in India, State-wise;

(c) whether sufficient gas is made available to all those gas based urea production plants; and

(d) if so, the total allocation of gas to these plants out of the total domestic gas production in the country?

MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS

(SHRI HANSRAJ GANGARAM AHIR)
(a): No, Madam.

(b): At present, there are 30 urea manufacturing units, out of which 27 units use Natural Gas as feedstock and fuel and remaining three urea units use Naphtha as feedstock and fuel, the detail of which is annexed.

(c): The Cabinet Committee on Economic Affairs (CCEA) in its meeting dated 31.03.2015 has approved the scheme for pooling of gas in Fertilizer (Urea) sector. In compliance with the approval of CCEA, Ministry of Petroleum and natural gas on 20.05.2015 has notified guidelines for pooling of gas in fertilizer (Urea) sector. As per the guidelines domestic gas will be pooled with Re-gasified Liquefied Natural Gas (R-LNG) to provide natural gas at uniform delivered price to all Natural Gas Grid connected Urea manufacturing plants for the purpose of manufacturing of Urea in two phases. The above scheme will ensure supply of sufficient gas to gas based urea plant.

(d): Out of total domestic gas allocation of 246.89 MMSCM, Fertilizer sector has been allocated 58.92 MMSCMD. During the year 2014-15, Fertilizer sector has been supplied 26.70 MMSCMD of gas out of total 74.48 MMSCMD domestic gas supplied in the country.

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