Empowered Group of Ministers (EGoM) on pricing and the petroleum ministry has made changes in the allocations of KG-D6 gas on back of reduction in gas output. The ministry made firm allocation to National Fertilizer Ltd (NFL)
Vijaypur has been reduced from 0.65 MMSCMD to 0.61 MMSCMD. Firm allocation to Ratnagiri Gas Power Pvt. Ltd (RGPPL), Dhabol has been fixed at 7.6 MMSCMD Firm allocations to Pragati Power Corporation Ltd has also been reduced from 0.93 MMSCMD to 0.836 MMSCMD.
Reduction in gas allocation to NFL from KG D6 will force NFL Vijayapur to use high priced LNG which will increase cost of production for Urea from Vijayapur. Increase in urea price will not impact NFL margin because increase in cost of raw material is fully compensated by Government of India in form of higher Subsidy.
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Vijaypur has been reduced from 0.65 MMSCMD to 0.61 MMSCMD. Firm allocation to Ratnagiri Gas Power Pvt. Ltd (RGPPL), Dhabol has been fixed at 7.6 MMSCMD Firm allocations to Pragati Power Corporation Ltd has also been reduced from 0.93 MMSCMD to 0.836 MMSCMD.
Reduction in gas allocation to NFL from KG D6 will force NFL Vijayapur to use high priced LNG which will increase cost of production for Urea from Vijayapur. Increase in urea price will not impact NFL margin because increase in cost of raw material is fully compensated by Government of India in form of higher Subsidy.
....more info