Nagarjuna's south India urea plant running at 50% capacity due to high gas prices

Nagarjuna Fertilizers and Chemicals

07/12/2022 10:12

NEW DELHI, Dec 7 (Reuters) - Nagarjuna Fertilizers and
Chemicals Ltd   NGFR.NS  is operating its 1.4 million tonnes a
year urea plant at Kakinada in southern India at 50% capacity
for last two to three months due to high price of imported gas,
its Chairman Emeritus said on Wednesday. 
    The plant requires 2.7-2.8 million standards cubic meters of
gas and the company is getting half of that from local sources
at $10 plus per million British thermal units (mmBtu) for its
one unit, K.S Raju told Reuters at an industry event.
    "Because of high gas prices our one unit is shut for last
two to three months," he said.
    He said the second unit will start operations if prices of
imported liquefied natural gas (LNG) decline to $12-14 per
mmBtu.
 (Reporting by Nidhi Verma, writing by Shivam Patel, 
editing by Louise Heavens)
 ((Shivam.Patel@thomsonreuters.com;))