FACT to boost output

India's Fertiliser and Chemicals Travancore Ltd (FACT) plans to boost output to 1 million t in 2016/17. This follows the sharp fall in LNG prices, according to Reuters.

Asian LNG prices have declined by 75% since 2014, which has reduced the cost of the feedstock to produce ammonia for fertiliser production.

"We never thought, nor even dreamt, that we would get LNG at this rate" Srivastava told Reuters.

Recently the company sought to import 10.39 trillion Btu of LNG equivalent in three cargoes over the year to August 2017.

"We may get US$5-US$6/mBtu (price for LNG import)," Srivastava added.

FACT's LNG purchases will also help India's top gas importer Petronet LNG to reduce losses at its Kochi terminal.

"Last year capacity use at Kochi was about 2%. This year it could be 5-6%," said Petronet LNG's head of finance, R. K. Garg.

Read the article online at: https://www.worldfertilizer.com/nitrogen/08072016/fact-to-boost-output/