NEW DELHI (Reuters) – Nagarjuna Fertilizers and Chemicals Ltd 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)
