The Hindu Business Line : FACT signs pact with GAIL for LNG supply

Fertilisers and Chemicals Travancore Ltd (FACT) has signed a `heads of agreement' with Gail (India) Ltd for supply of LNG from the proposed terminal at Kochi for FACT's fertiliser and petrochemical units.

LNG is expected to be available during 2006-07 and FACT's requirements will be in the order of 0.5 million tonne a year, according to an official release here.

The agreement was signed here by Dr N K Pillai, General Manager (Production Coordination), FACT, and Mr Gopinath Swamy, General Manager, GAIL.

GAIL, which would be marketing 60 per cent of the 2.5 million tonne LNG from the proposed terminal to be set up by Petronet LNG Ltd here, had already entered into similar agreements with 10 other prospective buyers last month.

Setting up of the terminal has been pending for the past five years for want of sufficient assured market.

A market study conducted by the GAIL earlier and the FACT Engineering and Design Organisation (FEDO) recently had shown adequate market for the gas from Kochi, they added.

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