New Delhi: The government has decided to procure spot gas to prevent any shortage of Liquefied Natural Gas (LNG) for domestic urea manufacturing due to the disruption caused by the west Asia crisis, said MEA spokesperson at the Press Briefing on Saturday, adding that the department of fertilisers has also put out global tenders in anticipation of the current situation
“The first phase (of gas purchase) purchase will be by Tuesday,” the spokesperson said.
The global tenders for urea purchase have also received a very good response and we expect to receive the bulk of the quantities ordered from a variety of sources by end March, the spokesperson added.
Domestic manufacturing of urea has taken a hit with several manufacturers shutting down their factories in advance for their annual maintenance as LNG supply has been cut by 40 per cent after a severe disruption in gas imports from its largest supplier, Qatar, due to the West Asia conflict.
“All our partners have assured us of uninterrupted supplies, and we hope to attain and maintain comfortable stocks of fertilisers by the time Kharif demand peaks by 15th of May,” the spokesperson said.
The kharif season, which starts in June, is the largest planting season, accounting for more than half of India’s foodgrain production. Several staple crops such as oilseeds, pulses, rice, cotton, maize, and sugarcane are sown during the season, making it vital for food inflation.
During March, fertiliser consumption typically remains moderates, allowing the industry to replenish inventories and undertake routine maintenance operations at production facilities. They utilise the period for producing and stocking up for the kharif (monsoon) season.
India’s top gas importer Petronet LNG last week invoked force majeure serving notices to local buyers like GAIL on supply reduction due to vessel movement constraints following the escalating conflict.
Petronet LNG’s tankers were unable to reach the LNG loading terminal at Ras Laffan in Qatar. US and Israel’s air strikes on Iran have disrupted fuel shipments in the region, affecting India’s top supplier Qatar.
