SPIC to switch over to natural gas as feedstock
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Move will cut need for working capital
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Move will cut need for working capital
Over the next 12 months, Southern Petrochemicals Industries Corporation Ltd. (SPIC) will completely switch over from naptha to using natural gas as a feedstock to produce urea, said a top official.
“We will be one of the last few companies in Tamil Nadu to completely move towards natural gas,” Ashwin Muthiah, chairman, SPIC and AM International, told The Hindu.
“On Saturday, the last mile connectivity was resolved with our Thoothukudi plant starting to receive assured supply of natural gas through IOC’s recently-inaugurated Ramanathapuram-Thoothukudi gas pipeline,” he added.
Fertilizer-maker Southern Petrochemicals Industries Corporation Ltd (SPIC) said it has started taking delivery of natural gas directly from ONGC s facility, through Indian Oil Corporation Limited (IOCL s) recently inaugurated Ramanathapuram-Thoothukudi natural gas pipeline, at its Thoothukudi factory in Tamil Nadu. The natural gas will be transported from the gas fields of ONGC in Ramanathapuram to the company’s plant in Thoothukudi.
SPIC is one of the anchor customers to benefit from this pipeline. In the first phase, natural gas will be made available directly to SPIC s plant as feedstock and fuel, transported from ONGC s gas wells through the IOC pipeline. In the second phase, IOC will also supplement the supply of natural gas from its LNG facility in Enmore, near Chennai.
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