Indian fertiliser company FACT to boost output after drop in LNG prices

Fertilisers And Chemicals Travancore

24/06/2016 14:29

* FACT issues tender to buy three LNG cargoes 
    * Aims to buy at $5-$6/mBtu 
    * Petronet LNG eyes boost for Kochi plant 
 
    NEW DELHI, June 24 (Reuters) - India's Fertiliser and 
Chemicals Travancore Ltd (FACT) FCTL.NS   aims to boost output 
by two thirds to a million tonnes in 2016/17 after a sharp fall 
in liquefied natural gas (LNG) prices, its chairman said on 
Friday. 
    Asian LNG prices have declined by 75 percent since 2014 
because of falls in global oil prices, reducing the cost of the 
feedstock to produce ammonia for fertiliser production. 
    FACT resumed LNG imports in April after a gap of more than a 
year, buying at $7.79 per million British thermal units (Btu), 
Chairman Jaiveer Srivastava said. 
    "We never thought, nor even dreamt, that we would get LNG at 
this rate" Srivastava told Reuters. 
    The company issued a tender on Friday seeking to import 
10.39 trillion Btu of LNG equivalent in three cargoes over the 
year to August 2017. 
    "We may get $5-$6/mBtu (price for LNG import)," Srivastava 
said. 
    FACT's LNG purchases will also help India's top gas importer 
Petronet LNG  PLNG.NS  to reduce losses at its Kochi terminal. 
    "Last year capacity use at Kochi was about 2 percent. This 
year it could be 5-6 percent," said Petronet LNG's head of 
finance, R. K. Garg. 
         
 
 (Reporting by Nidhi Verma; Editing by David Goodman) 
 ((nidhi.verma@thomsonreuters.com; +91 11 49548031; Reuters 
Messaging: nidhi.verma.thomsonreuters.com@reuters.net)) 
 
Keywords: INDIA FERTILISERS/FACT