Fertilisers and Chemical Travancore Ltd (FACT), which has decided to import ammonia following the steep prices of LNG supplied by Petronet LNG Ltd, will receive the first consignment in the first week of February, company authorities said. Fertiliser production of the company is progressing smoothly with the help of the reserve stock of ammonia at Udyogamandal and the storage facility at Cochin Port, the authorities added.
The largest buyer of LNG supplied by Petronet, through its newly-dedicated terminal at Puthuvype, FACT decided to stop purchasing the natural gas owing to the extremely high prices. PLL quoted $24.35 per unit and wanted FACT to procure the entire consignment of 80 million cubic metres. However, FACT requires approximately half of this quantity to run its plant continuously for two months.
Liquefied ammonia gas (LAG) is an important raw material used by FACT for producing NPK fertiliser at the company’s plant at Ambalamugal.
FACT had been producing the ammonia internally at its plant at Udyogamandal using the Petronet LNG. But owing to the high price, the company has decided not reopen the plant which was closed down recently for repair.
Meanwhile, the Save FACT Action Committee has decided to launch stringent agitation demanding supply of LNG to FACT at reasonable price.
The Action Council will stage a hunger strike by 251 persons at Premier Junction on Wednesday. It has also been decided to submit a memorandum to the Union Government seeking immediate intervention to save the public sector fertiliser company.
The office-bearers of the committee have urged the Centre to grant LNG compensation to FACT. The leaders have also sought waiver of the 51.5 per cent Customs duty and 14.5 per cent Value Added Tax (VAT) on LNG and review of LNG pricing by Petronet.
“The price can be brought down by $3 by waiving KVAT alone,” Action Committee convener and former MP K Chandran Pillai pointed out.
“With Petronet LNG Ltd quoting such high prices, FACT is losing its dream of regaining lost glory. The price of LNG supplied by PLL is $24.35 while the price of naphtha was $24.It is pertinent to note that other fertiliser companies in the country get LNG at a rate of $5 to $7,” Pillai said in a press release.
The future course of action of the committee will be finalised at a meeting to be held on Friday.