Page 147 - CW E-Magazine (22-7-2025)

Fertilisers Hydrocarbons

SOURCING STRATEGY FEEDSTOCK SOURCING
Indian fi rms secure long-term DAP supply deals Petronet to regasify LNG imported by Deepak Fertilisers

with Saudi’s Maaden Performance Chemiserve Ltd. Equinor, the energy major based in
(PCL), a subsidiary of Deepak Mining Norway.
Indian Potash Ltd. (IPL), KRIBHCO fertilisers to improve farming results Solutions Ltd. (DMSL) which is a
and Coal India Ltd. (CIL) have signed and sustainability. Indian offi cials said wholly-owned subsidiary of Deepak “The agreement marks a major
long-term agreements with Saudi state- the deal signifi cantly increases the Fertilisers and Petrochemicals Corpo- milestone in our long-term vision to
owned mining company, Maaden. availability of DAP, the second most ration Ltd. (DFPCL), has inked a deal create a strong, reliable, and effi cient
used fertiliser in India after urea, and with Petronet LNG Ltd. (PLL) for the supply chain – from natural gas to val-
The agreements were fi nalised dur- contributes to the country’s goal of regasifi cation of Liquefi ed Natural ue-added downstream products. It will
ing the recent visit of Union Chemicals food security over the medium to long Gas (LNG) to be imported by DFPCL This agreement will generate revenue improve our operational effi ciency and
and Fertilizers Minister Mr. J. P. Nadda term. group. The term of the agreement is of about Rs. 1,200-crore for PLL with enhance our competitiveness by ensur-
to Saudi Arabia. from May-July 2026 to 31 December an upside potential to generate an ing consistent access to cost-effective
India has traditionally depended on 2031. additional revenue of upto 20%, over the natural gas, especially for our ammonia
The deals represent supply of over- their cooperation beyond DAP to in- countries like China for DAP imports contract duration. The regasifi ed gas will and related product lines. This integra-
all enhanced 3.1-million metric ton of clude urea and other key fertilisers. and the Saudi deal comes at a time Under the terms of the deal, PLL be primarily utilised in manufacturing ted approach forms a solid and low-risk
Diammonium Phosphate (DAP) ferti- Discussions were also held on mutual when India is facing headwinds in its will receive, store and regasify approxi- units of DFPCL group at Taloja. foundation for our continued forward
liser per annum for fi ve years from investments, with interest from Indian fertiliser imports from China. Accord- mately 25.6 TBTUs of LNG annually, integration into customised and spe-
2025-26 onwards with further exten- public sector fi rms to invest in the Saudi ing to a report in The Economic Times, post an initial ramp-up period in the cal- Earlier, DFPCL had signed an LNG cialty solutions,” Mr. Sailesh Mehta,
sion of fi ve years with mutual consent. fertiliser industry. In return, Saudi com- China has halted speciality fertiliser endar year 2026, at its Dahej terminal. sale and purchase agreement with CMD, DFPCL said.
This is a big rise from the 1.9-million panies are also expected to explore exports to India for two months now,
metric tons India imported from Saudi investment opportunities in India. A forcing Indian companies to turn to FALLING BEHIND
Arabia in 2024-25. joint team has been formed to explore Europe, Russia, and West Asia for Marginal increase in India’s refi ning capacity in past seven years
long-term collaboration, including re- alternative sources of raw materials – at
Both countries agreed to expand search on India-specifi c customised signifi cantly higher costs. India has added just 5% to its refi n- India’s refi nery capacities (in mtpa)
ing capacity over the past seven years – Company 2017-18* 2025* (Projected) Current#
COUNTERING COUNTERFEITS a sharp contrast to the 69% expansion
States told to crack down on fake, substandard fertilisers originally planned by 2025, as per an IOCL 80.7 114.75 80.8
50.9
HPCL + ONGC
62.9
39.9
analysis by Economic Times newspa-
per. A mix of climate-related demand BPCL + NRL 36.5 62.9 38.3
In a move to protect farmers and en- prohibited under the Fertilizer (Con- violators. States have been encouraged uncertainty, land constraints, and the
sure the integrity of agricultural inputs, trol) Order, 1985, which fell under the to involve farmers and farmer groups pandemic has slowed progress, further Nayara Energy 20.0 45.0 20.0
Union Agriculture and Farmers’ Wel- Essential Commodities Act, 1955. He in monitoring efforts and to launch deepening the country’s dependence RIL – Domestic 33.0 40.5 33.0
fare Minister Mr. Shivraj Singh Chou- said it was the responsibility of the awareness campaigns to help them on energy imports. RIL – SEZ 35.2 35.2 35.2
han has written to the Chief Ministers States to ensure adequate availability of distinguish between genuine and fake JV of PSUs – Saudi Aramco - 60.0 0.0
of all States and Union Territories, ask- fertilisers at the right places and loca- fertilisers. India’s refi ning capacity was pro-
ing them to launch a campaign for en- tions where it was required. jected to rise from 245-mtpa in 2017-18 Total 245.0 414.0 258.0
suring fertiliser quality and calling for “States have been directed to to 414-mtpa by 2025 and 439-mtpa *2018 report by Oil Ministry Committee on Refi nery Expansion
immediate and strict action against the The Centre has directed states to develop feedback and information by 2030, according to a 2018 report by #Latest oil ministry data
sale of fake and substandard fertilisers. monitor fertiliser distribution closely, systems to involve farmers/farmer an offi cial panel of oil ministry offi cials Reliance Industries’ 7.5-mtpa addition; those by IOC and HPCL, are under
take action against overpricing and groups in the monitoring process and and industry executives, which based its and IOC’s 34-mtpa target. construction and expected to come
The directive aims to curb the black diversion, and strengthen sampling and to make special efforts to educate far- projection on “fi rm plans” by refi ners. online over the next few years.
marketing of subsidised fertilisers, the testing to detect counterfeit products. mers on identifying genuine and coun- The BPCL-NRL combined capa-
circulation of counterfeit products, and “Forced tagging of nano-fertilisers or terfeit products,” the minister said The refi ning capacity, however, has city expanded by 2-mtpa, compared to Slower expansion, coupled with
illegal practices such as forced tagging bio-stimulant products along with con- adding that all States must launch a risen to just 258-mtpa, according to oil a projected 26.4-mtpa by 2025, while surging domestic demand, has pushed
of nano- or bio-stimulant fertilisers. ventional fertilisers should be stopped State-wide campaign in accordance ministry data. The major misses includ- the HPCL-ONGC group achieved an up India’s imports of petroleum pro-
immediately,” the minister said and to eliminate the problem of fake and ed the India-Saudi 60-mtpa greenfi eld 11-mtpa increase – the largest by any ducts by 43% in seven years to 2024-25,
Mr. Chouhan said the sale of coun- urged strict legal action, including substandard agricultural inputs from its joint venture project; Rosneft-backed group – against its 23-mtpa target. while exports have declined by 3% in
terfeit or substandard fertilisers was license cancellations and FIRs, against roots. Nayara Energy’s 25-mtpa expansion; Some expansion projects, including volume terms.

146 Chemical Weekly July 22, 2025 Chemical Weekly July 22, 2025 147

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