MMTC plans to import liquefied natural gas (LNG) from the spot market to meet fuel demand of a fertiliser plant, the state-run trader's Chairman and Managing Director Ved Prakash said on Thursday.
MMTC wants to capitalise on international gas prices halving to about USD 7-8 per million British thermal unit and import LNG in ships at spot or current rates.
"LNG prices were ruling at USD 18-20...now is it quite economical for fertiliser industry, he said. A fertiliser company, whom MMTC was supplying potash, had approached it for arranging LNG. Since their requirement was urgent so we immediately tied up with GAIL because they have the LNG import terminal at Kochin in Kerala," Prakash said without naming the fertiliser plant.
MMTC, he said, will issue global tenders for import of LNG for this fertiliser unit and will look at roping in more units for supply of LNG.
It will use one of the LNG import terminals on the west coast to import the fuel and then use the existing pipeline network to supply the gas to the fertiliser plants.
Asked if MMTC would be going for spot tenders or long term contract, Prakash said, "Initially it will be spot tenders but when we are able to tie with more units like 3 or 4 units on a long term thing then we will go for long term contracts."
MMTC, he said, would be importing the fuel and using the LNG terminal were the facilities to import the fuel in cryogenic vessels and reconvert the liquid fuel into gaseous state are available.