India Plans to Use U.S. LNG to Revive Fertilizer Plants

  • GAIL expects to sell a third of U.S. LNG to 3 fertilizer units
  • India reviving Sindri, Gorakhpur, Barauni fertilizer plants

The Amazon Brilliance oil tanker, right, sails past a storage tank, left, at the Cheniere Energy Inc. liquefied natural gas (LNG) terminal in Sabine Pass, Louisiana, on Jan. 14, 2016.

Photographer: F. Carter Smith/Bloomberg
Lock
This article is for subscribers only.

India’s biggest gas utility plans to use some of the liquefied natural gas it gets from the U.S. to restart three idled fertilizer plants, according to people with knowledge of the matter.

State-run GAIL India Ltd. plans to supply the factories in eastern India with more than a third of the LNG it’s contracted to buy from the U.S., said the people, asking not to be identified as they aren’t authorized to speak to the media. The facilities were shut from 1990 onward because they became unviable. The company will connect them by pipelinesBloomberg Terminal to supply the imported gas, the people said.