12 Sep 2012 12:45 PM from CapEx
Nidhi Bhati

ONGC ropes in Tata Chemicals for Rs.50 billion urea project

Plant proposed at Khubal in northern Tripura

Oil and Natural Gas Corporation Ltd (ONGC) has shortlisted Tata Chemicals as its private partner to set up a Rs.50 billion gas based urea fertiliser plant at Khubal in northern Tripura.

In 2011, ONGC had discovered gas reserves at Khubal near the Assam-Agartala National Highway (NH-44). The company is considering setting up an urea plant in joint venture with Government of Tripura. According to R P N Singh, Minister of State for Petroleum and Natural Gas, the urea plant is being set up for early monetisation of the new gas discovery from Khubal field, subject to the techno-commercial viability. Also subject to allocation by Government, approx. 3.0 mmscmd of natural gas is projected to be available as feed stock on long term basis from 2016-17 onwards at Khubal.

ONGC had invited Expression of Interest (Eol) in January 2012 to select a strategic partner for the proposed project. Six Indian companies are reported to have participated in the bidding. Implementation of the urea plant would take around 44 to 48 months once the investment decision is made.