SPIC transitions to 100% natural gas for urea production

Southern Petrochemical Industries Corporation Ltd. (SPIC), a leading player in India’s agri-nutrient and fertilizer sector, has announced its complete shift to using 100 per cent natural gas for the production of urea. This strategic move not only positions SPIC as a pioneer in sustainable manufacturing practices within the industry but also significantly lowers the overall cost of production for fertilizers.

Previously reliant on a mix of fuels, SPIC sourced 60 per cent of its domestic natural gas through the Indian Oil Corporation Ltd. (IOCL) Ramnad Thoothukudi pipeline, a collaboration with the Oil and Natural Gas Corporation (ONGC), Ramnad. However, the recent completion of the IOCL’s Ennore cross-country pipeline, coupled with ONGC’s commitment to supply domestic gas, provided SPIC with the unique opportunity to transition entirely to a cleaner fuel source.

This move is aligned with India’s broader energy strategy, which aims to increase the share of gas in the country’s energy mix from the current 6.3 percent to 15 percent. The continuous availability of feedstock, devoid of the need for storage, alongside minimal logistics and freight overheads, marks a significant step towards operational efficiency and environmental sustainability.

Ashwin Muthiah, chairman of SPIC, highlighted the company’s longstanding commitment to innovation and sustainability, stating, “SPIC has been one of India’s pioneering fertilizer companies for over five decades. We are pleased to announce the successful transition to 100 per cent natural gas for urea production.”

As one of the anchor customers benefiting from the new pipeline, SPIC has adapted its primary reformer catalyst to handle natural gas exclusively. This not only signifies a leap towards cleaner production methods but also underscores the company’s adaptability and forward-thinking approach in the competitive agri-nutrient industry.