RIL set to ink pact with fertiliser cos for KG block gas

Reliance Industries Ltd (RIL) is set to sign gas sale and purchase agreement (GSPA) with the identified urea plants sometime next week.

RIL and its partner NIKO are expected to begin gas production from its D6 block in Krishna-Godavari Basin in a couple of weeks. Sources told Business Line that, “the D6 gas producers are expected to ink a GSPA with 12 fertiliser companies next week.”

The prospective buyers include Rashtriya Chemicals and Fertilisers (RCF), Nagarjuna Chemicals and Fertilisers , IFFCO, KRIBHCO, Chambal Fertilisers , Tata Chemicals , Indo-Gulf Fertilisers , and companies fed by GAIL (India) Ltd ’s Hazira-Vijaipur-Jagdishpur pipeline.

Also Read: RIL close to inking gas sale pacts with 12 fertiliser cos

The quantum of 15 mscmd of gas to be supplied to the fertiliser sector has already been decided by an Empowered Group of Ministers (EGoM). The other sectors prioritised by the EGoM were gas-based power plants, gas-based LPG plants, and city gas distribution projects.

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