Millennium Post

Iran may supply gas at $3/mmbtu for Indian firms’ urea plant JV

Iran is likely to supply gas at $3 per mmbtu for India's proposed urea and ammonia plant to be set up in the Persian Gulf nation. Rashtriya Chemicals and Fertilisers (RCF) and Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) have been jointly working on this project. The project will also include an Iranian firm.

The project is proposed to be set up at a petrochemicals hub at Chahbahar, Iran, using natural gas as feedstock with an estimated investment of about Rs 7,000 crore.

‘Talks are at an advanced stage and there have been indications from the Iranian authorities for supplying gas at $3 per mmbtu,’ sources said.
As per the proposal, the Iraninan government will assure supply of gas at fixed rate and India will lift the total quantity of soil nutrients produced at the proposed plant. Work on the project has expedited following the lifting of sanctions on Iran by the US in November last year. Iran had struck a deal with world powers to curb its nuclear programme in return for some sanctions relief and no new nuclear-related sanctions on the country for 6 months.

The Fertiliser Ministry had also received a letter from the Iranian embassy inviting a delegation from India to discuss gas prices and supply for the proposed urea plant there, sources added. However, the Indian government is already in talks with Iran to provide financial assistance and develop Chabahar port.
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