Matix urea plant in West Bengal idles for want of gas.

Had Matix Fertilisers and Chemicals' plant near Panagarh in West Bengal started producing urea, it would have had a claim to fame: the only one in the world to use coal-bed-methane (CBM) as feedstock.

But eastern India's only urea manufacturing facility has been idling for nearly two years now, for want of gas. Also idling is the investment of approximately Rs. 4,700 crore.

Promoted by the Kanodias of the Datamatics group through a Mauritius-based holding company, the 1.3 million tonne per annum project was to run on 2.8 million metric standard cubic metre (mmscmd) of methane to be supplied by Essar Oil from its Ranigunj field beginning 2012. But two years later, Essar is producing a mere 0.3 mmscmd of gas or a little over 10 per cent of the promised volume.

According to Essar sources, the gas supply problem was because of delays in 'land (acquisition), environment (clearances), geological and other factors'.

The non-availability of gas has forced it to reschedule the plant's commissioning several times since 2013. 'Had there been a way out, we would have exercised the option,' a Matix source told Business Line.

There is little Matix can do about the situation. For, the eastern region is not on the country's natural gas or LNG distribution map. And the total availability of methane (from Essar, Great Eastern Energy and ONGC) is a mere 0.55 mmscmd.



HBL