Pricing
1
Fertiliser plants consume about 42.25 million standard cubic metres a day (mscmd) of gas for manufacture of subsidised urea. 26.50 mscmd comes from domestic fields and • the balance 15.75 mmscmd is imported liquefied natural gas (LNG). • Out of this, price of domestic gas is about half the cost of LNG. The cost of gas, which is the most important component for production of urea, varies from plant to plant owing to differential rates at which imported LNG is contracted as well as the cost of transportation. averaging of different rates of domestic and imported gas to ensure supply of fuel to all urea plants at a uniform delivery cost. • a proposal to pool or average out prices of domestic natural gas and imported LNG used by fertilizer plants to make the cost of fuel uniform and affordable • The Cabinet Committee on Economic Affairs (CCEA) has approved in focusing on improving plant efficiency and might help in price advantage in sourcing of LNG • bring down the cost of fuel and help save subsidy • save Rs.1,550 crore in subsidy, and would benefit 30 urea plants • This would help pricing Tuesday, April 21, 2015 8:20 PM chemicals and fertilizers Page 1
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Transcript of Pricing
Fertiliser plants consume about 42.25 million standard cubic metres a day (mscmd) of gas for manufacture of subsidised urea.
26.50 mscmd comes from domestic fields and •the balance 15.75 mmscmd is imported liquefied natural gas (LNG).
•
Out of this,
price of domestic gas is about half the cost of LNG.
The cost of gas, which is the most important component for production of urea, varies from plant to plant owing to differential rates at which imported LNG is contracted as well as the cost of transportation.
averaging of different rates of domestic and imported gas to ensure supply of fuel to all urea plants at a uniform delivery cost.
•
a proposal to pool or average out prices of domestic natural gas and imported LNG used by fertilizer plants to make the cost of fuel uniform and affordable
•
The Cabinet Committee on Economic Affairs (CCEA) has approved
in focusing on improving plant efficiency and might help in price advantage in sourcing of LNG
•
bring down the cost of fuel and help save subsidy•save Rs.1,550 crore in subsidy, and would benefit 30 urea plants
•
This would help
pricingTuesday, April 21, 2015 8:20 PM
chemicals and fertilizers Page 1
