MINSITER OF STATE (INDEPENDENT CHARGE) IN THE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
AND MINISTER OF STATE (I/C) IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION
(SHRI SRIKANT KUMAR JENA)
(a): NFL has converted its three FO based units at Nangal, Bathinda & Panipat to Natural Gas.
Panipat and Bathinda units were commissioned in January, 2013 and Nangal unit was commissioned
in April, 2013. In the absence of allocation of domestic gas for these projects, these plants
are being run on spot RLNG.
(b): In the absence of allocation of domestic gas, NFL has tied up spot RLNG from M/s.GAIL
for its Nangal and Bathinda Units and from M/s.IOCL for Panipat Unit, for commissioning and
operation after changeover. The present price of spot gas on delivered basis at the three
converted units ranges between USD 19-22/MMBTU.
(c): The project viability of three FO based units of the company converting to Gas was
approved by Government of India considering delivered Gas price of USD 8/MMBTU and FO/LSHS
price of around USD 14.5/MMBTU. At present with delivered price of spot LNG, running of
plants after conversion from FO/LSHS to Gas is not viable, as the projected energy saving
accuring to the Government because of the price differential of USD 6.5/MMBTU (USD 14.5 -
8/MMBTU), between FO/LSHS and delivered gas is not achievable. At present the differential
cost between spot Gas price (USD 19.22/MMBTU) and present FO/LSHS (delivered price of USD
22-23/MMBTU) is only USD 1-2/MMBTU against envisaged price differential of USD 6.5/MMBTU.
(d): Gas cost is a pass through in terms of pricing policy of Urea and higher price of spot
Gas is not adversely impacting the operations of FO units converted to Gas.
However, due to higher price of spot Gas, the savings projected in the subsidy has not started
accruing. The saving in subsidy shall accrue once domestic gas is allocated to these FO based
units converted to Gas.
