Call for Expression of Interest
Advertisements inviting Expression of
Interest have been inserted for long-term supply of some of the raw
materials/intermediates and for implementation of some of the potential
projects. The details of these are given briefly in the following sections.
Interested parties can contact FACT for any further information required in
this regard.
The Fertilisers And Chemicals Travancore Limited (FACT) has the following 3 Production Divisions:
1. Udyogamandal Division
2. Cochin Division
3. Petrochemical Division
Udyogamandal and Petrochemical Divisions are located at Udyogamandal, about 20 KM from Cochin City. These two divisions together form the Udyogamandal Complex of FACT.
Cochin Division is located at Ambalamedu, also about 20 KM from Cochin City.
The plants in these units, products, installed capacities and the normal operating capacities are as below:
|
Sl.No. |
Plant |
Product |
Installed
Capacity MTPA |
Operating
Capacity MTPA |
Udyogamandal
Complex
|
||||
Udyogamandal Division
|
||||
|
1 |
Ammonia Plant |
Ammonia & Synthesis
Gas |
326,700 (including
Syn - Gas as Ammonia) |
326,700 (including
Syn - Gas as Ammonia |
|
2 |
SO2 / Sulphuric Acid
Plant |
Sulphur
Dioxide & Sulphuric
Acid |
181,500 (as
H2SO4) |
181,500 (as
H2SO4) |
|
3 |
DCDA Sulphuric Acid
Plant |
Sulphuric
Acid & Oleum |
198,000 (as
H2SO4) |
198,000 (as
H2SO4) |
|
4 |
Phosphoric Acid Plant |
Phosphoric
Acid |
33,000 (as
P2O5) |
12,000 (as
P2O5) |
|
5 |
Complex Fertilizer Plant |
Factamfos (NP
20:20:0:13) |
148,500 |
195,000 |
|
6 |
Ammonium Sulphate
Plant |
Ammonium
Sulphate |
225,000 |
225,000 |
Petrochemical Division
|
||||
|
1 |
Caprolactam Plant |
Caprolactam |
50,000 |
50,000 |
Cochin Division |
||||
Phase-I |
||||
|
1 |
Ammonia Plant |
Ammonia |
198,000 |
Suspended |
|
2 |
Urea Plant |
Urea |
330,000 |
Suspended |
Phase-II |
||||
|
1 |
Sulphuric Acid Plant |
Sulphuric
Acid |
330,000 (as
H2SO4) |
366,300 (as
H2SO4) |
|
2 |
Phosphoric Acid Plant |
Phosphoric
Acid |
115,000 (as
P2O5) |
74,000 (as
P2O5) |
|
3 |
Complex Fertilizer
Plant |
Factamfos (NP
20:20:0:13) |
485,000 |
630,000 |
The feedstock for the Ammonia Plants is Naphtha, supplied by Kochi
Refineries Limited (KRL). The fuel used in the
boilers is Furnace Oil/LSHS, which is also supplied by KRL.
Sulphur required for the Sulphuric Acid
Plants and Rock Phosphate required for the Phosphoric Acid Plants are imported
through Cochin Port.
Benzene, the main raw material for
Caprolactam, is procured indigenously. The other inputs required for
Caprolactam like Ammonia, Sulphur Dioxide, Oleum and Carbon Dioxide are from
captive production. Ammonium Sulphate is generated as a co-product of
Caprolactam.
The captive production of Sulphuric Acid is
not sufficient to meet the entire requirement of Sulphuric Acid for production
of Phosphoric Acid and Factamfos. Hence, Phosphoric Acid production is
restricted to that possible with the balance Sulphuric Acid available after
meeting the requirement of Factamfos. Similarly, captive Phosphoric Acid
production is not sufficient to meet the full requirement of Phosphoric Acid
for production of Factamfos. The deficit in Sulphuric Acid and Phosphoric Acid
is covered to the extent possible with outsourcing of these intermediates.
Re-commissioning of the facilities in
Cochin Port for import of Ammonia is in progress. It is expected that the
facilities will be ready for import of Ammonia by May 2006, so that it will be
possible to switch over to imported Ammonia when the landed price of imported
Ammonia is cheaper than the Naphtha-based captive Ammonia.
The proposed LNG terminal in Cochin is
expected to be operative by 2009. LNG can be used as feedstock and fuel in
place of costly Naphtha and Furnace Oil, once the gas is available. The
possibilities of sourcing Natural Gas either as Regassified Liquefied Natural
Gas (RLNG) or as Compressed Natural Gas (CNG) even at an earlier date, are
being explored.
Production of Urea has been suspended in
Cochin Division, as operation of the Naphtha-based, energy-intensive
Ammonia/Urea Plants of 1970 vintage has become unviable under the present Group
Pricing Policy.
The possibility of reviving Urea
production, when gas supply is available, is being explored.
=================================================
1. Supply of Regassified Liquefied Natural Gas (RLNG) or Compressed Natural Gas (CNG) for use as feedstock and fuel in the Fertiliser Units
At present, FACT uses Naphtha as the feedstock for its Ammonia Plants. Furnace Oil is used as the fuel for the Boilers of Captive Power Plants, Dryers in the Complex Fertilizer Plants and certain other equipments. As the cost of Naphtha and Furnace Oil are high, FACT is looking into the possibility of switching over to Natural Gas as feedstock and fuel at the earliest. Since there is no gas source in Kerala, Natural Gas will have to be brought from the available sources either in India or abroad.
Natural Gas is required to be delivered at the battery limits of FACT’s production units at Udyogamandal (Udyogamandal Complex) and at Ambalamedu (Cochin Division). The estimated requirements of Natural Gas are as follows:
|
Division |
Gas Requirement MMSCMD |
Gas Requirement MMTPA |
|
Udyogamandal Complex |
1.20 |
0.31 |
|
Cochin Division |
0.05 to 1.01 |
0.01 to 0.26 |
|
Total |
1.25 to 2.21 |
0.32 to 0.57 |
Natural Gas can be supplied either as Regassified Liquefied Natural Gas (RLNG) or as Compressed Natural Gas (CNG).
FACT invites expression of interest from parties who would be in a position to supply RLNG/CNG to FACT on a long-term basis.
The scope of the party will include the following:
a) Sourcing of the gas from countries where gas is available
b) Shipping the gas either as Liquefied Natural Gas (LNG) or as Compressed Natural Gas (CNG)
c) Unloading, Handling and Storage at Cochin Port
d) Regassification of the liquefied gas in the case of LNG
e) Pipeline Transmission of the gas from Cochin Port to the battery limits of FACT’s production units at Udyogamandal/Ambalamedu
All the facilities required for the above operations have to be provided by the supplier. Only the facilities required for handling the gas within the battery limits of the production units will be provided by FACT.
=================================================
2. SETTING
UP FACILITIES FOR PRODUCTION OF SULPHURIC ACID & PHOSPHORIC ACID OR
LONG-TERM SUPPLY OF THESE INTERMEDIATES
In the present operation pattern, the
captive production of Sulphuric Acid is not sufficient to meet the entire
requirement of Sulphuric Acid for production of Phosphoric Acid and Factamfos.
Hence Phosphoric Acid production is restricted to that possible with the
balance Sulphuric Acid available after meeting the requirement of Factamfos.
Similarly, captive Phosphoric Acid production is not sufficient to meet the
full requirement of Phosphoric Acid for production of Factamfos. The deficit in
Sulphuric Acid and Phosphoric Acid is covered to the extent possible with
outsourcing of these intermediates.
The present deficit of Sulphuric Acid is
about 0.1 MMTPA and that of Phosphoric Acid is also about 0.1 MMTPA (as P2O5).
In case captive production of Phosphoric Acid is to be increased to the full
capacity, the requirement of additional Sulphuric Acid would be of the order of
0.3 MMTPA. In this scenario, there will be a corresponding reduction of
external Phosphoric Acid requirement.
The interested parties will have to clearly
understand the present material balancing and offer a suitable option for
bridging the deficit of Sulphuric Acid and Phosphoric Acid so that production
of end-products could be maintained at the maximum possible levels. Some of the
options available are:
a)
Set
up new Sulphuric Acid/Phosphoric Acid Plants in FACT Cochin Division premises
to meet the entire additional requirement of Sulphuric Acid and Phosphoric Acid
The concept of the proposal is to set up additional captive production
facilities to meet the entire requirement of Sulphuric Acid and Phosphoric
Acid.
Preliminary studies indicate the
possibility of revamping the existing Phosphoric Acid Plant at Cochin Division
with capacity enhancement from the present level of 115,000 MTPA to about
160,000 MTPA. The order of magnitude of the investment required is Rs 40 crore.
A new Sulphuric Acid Plant of 363,000 MTPA
can be installed, which can cater to the present deficit and also meet the
additional requirement due to the increase in captive production of Phosphoric
Acid. The investment would be about Rs 100 crore.
The project can be set up either on a
Build, Own, Operate and Transfer basis or as a Joint Venture. The land required
and other infrastructural facilities available could be used for the project.
But the raw materials like Sulphur and Rock Phosphate will have to be arranged
by the interested party.
Enhancing the captive production of
Sulphuric Acid and Phosphoric Acid would necessitate augmentation of the
existing facilities at Cochin Port for handling the additional quantities of
imported raw materials. The estimated investment is about Rs 20 crore. The modalities
of implementation can be discussed and finalized.
b)
Set
up new Sulphuric Acid/Phosphoric Acid plants in a place of supplier’s choice
New Plants for production of Sulphuric Acid and Phosphoric Acid can be set up at a place of supplier’s choice and these intermediates can be supplied to FACT. The possibility of setting up these units near the sources of raw materials could be explored.
These projects could be implemented with the equity participation of FACT.
c) Supply
of Sulphuric Acid and Phosphoric Acid on a long-term basis from the existing
production facilities of supplier
Another option is to supply the Sulphuric Acid and Phosphoric Acid required by FACT on a long-term basis. The supplier should have their own production facilities to ensure uninterrupted supplies.
In this case the requirement will be about 0.1 MMTPA of Sulphuric Acid and about 0.1 MMTPA of Phosphoric Acid (as P2O5).
The scope of the supplier will include transportation of the material from the source and delivery into the storage tanks in FACT’s production units.
3. SETTING
UP FACILITIES FOR PRODUCTION/LONG-TERM SUPPLY OF UREA
The production of Urea in FACT Cochin Division has been suspended as the operation has become unviable under the present Group Pricing Scheme for Urea. The Ammonia/Urea Plants are of 1970 vintage. The specific energy consumption is high compared to the modern plants. Revamp of the plant to achieve energy efficiency levels of new generation plants would necessitate substantial capital infusion. Once LNG is available, unit energy cost will come down. But still, the specific energy consumption will be high unless the plants are revamped.
To cater to the market requirement in the Southern States of Kerala, Tamilnadu, Karnataka and Andhra Pradesh, FACT requires about 3,00,000 MTPA of Urea. Some of the options available are:
a) Supply
of the required quantity of Urea from the existing production facilities of the
supplier
The required quantity of Urea (about 3,00,000 MTPA) can be supplied on a long-term basis from the existing production units of the supplier.
b) Set
up new Ammonia/Urea Plants in a place of supplier’s choice, with equity
participation of FACT
The option is to set up new Ammonia and Urea Plants by the supplier at a location of supplier’s choice. FACT will have equity participation in the project. The location could be near a gas source so that gas is available at a substantially lower cost. The Urea produced can be supplied to FACT. A plant of higher capacity could also be set up to take advantage of the economies of scale. In such a case, the quantity available over and above FACT’s requirement could be marketed to external consumers.
c) Set
up a new Ammonia Plant and revamp the existing Urea Plant at FACT’s Cochin
Division, on a Build, Own. Operate and Transfer basis or as a Joint Venture
Company
The 198,000 MTPA Ammonia Plant and the 330,000 MTPA Urea Plant of FACT Cochin Division are of 1970 vintage. The energy consumption is high compared to the new generation plants. With the present cost of production, the operation is not viable.
Revamping the Ammonia Plant will involve high investment due to the vintage of the plant and due to certain inherent technical limitations in the plant. Preliminary studies indicate that it may not be economically feasible to revamp this plant.
The Urea Plant is in a better condition and it is possible to revamp the unit with a reasonable investment.
The suppliers can study the plants and ascertain the technical and economic feasibility of reviving Urea production in Cochin Division. A suggested model is as below:
The project proposes
re-establishing urea production by FACT by revamping the existing Urea plant at
Cochin Division using latest revamp technology for achieving a production of
1300 TPD Urea. An LNG based ammonia plant of capacity 1350 TPD matching with
the ammonia requirements of Urea and NP production at CD is also considered.
This project for the reestablishing Urea production at CD takes into
consideration the following:
a)
The
existing Urea Plant of 2 X 500 TPD capacity can be revamped such that the
capacity of 1300 TPD can be achieved.
b)
The
new LNG based 1350 MTPD Ammonia Plant has the economy of scale and would be
based on the latest, proven technology, which will be energy efficient.
c)
Sustained,
energy efficient production from the gas based Ammonia Plant can be ensured and
the energy consumption of the revamped Urea Plant is comparable with the new
generation plants.
d) Existing facilities like utility
systems for water, power, steam, instrument air etc., storage systems, prilling
tower, bagging plant etc can be used which will make the proposal more
attractive. Augmentation of capacities wherever required only need be provided
The indicative investment for the
project is Rs 1000 crore.
All infrastructure facilities and
utility units of the existing ammonia urea complex like bagging plant, water
supply and treatment systems, captive power plant, instrument air system etc
will be provided by FACT. Also FACT will provide developed land within the
factory complex for the new Ammonia Plant. Scope envisaged for the parties is
to set up the Ammonia Urea complex at FACT Cochin Division on a Build, Own,
Operate and Transfer basis or as a Joint Venture.
FACT will consume the requirement of Ammonia for NP
production from the new Ammonia Plant. Participation of FACT can include
engineering and project management services during project implementation and
marketing of product Urea. The details of the scope and responsibility matrix for the project
shall be concluded after detailed discussions.
d) Set
up a new Urea Plant at FACT premises, using Ammonia and Carbon Dioxide supplied
by FACT from its existing Ammonia Plant at FACT’s Udyogamandal Complex, on a
Build, Own, Operate and Transfer basis or as a Joint Venture
The Ammonia Plant in FACT’s Udyogamandal Complex has a capacity to produce 297,000 MTPA of Ammonia and 29,700 MTPA of Synthesis Gas (in terms of Ammonia). Ammonia is used for the production of Complex Fertilizers and Caprolactam/Ammonium Sulphate. The Synthesis Gas produced is used in the production of Caprolactam.
A portion of the Carbon Dioxide produced in the Ammonia Plant is used in the Caprolactam process and a small portion is sold directly to consumers. But there is no use for the major portion of Carbon Dioxide generated.
It is possible to set up a new Urea Plant of 363,000 MTPA using Ammonia and Carbon Dioxide from the Ammonia Plant. The Ammonia requirements of Complex Fertilizers and Caprolactam/Ammonium Sulphate could be met by imported Ammonia. The suggested project profile is as below:
The proposal is to set up a new single stream Urea Plant of 1100 MTPD capacity.
Land, Ammonia, Carbon Dioxide, and utilities to the
extent available will be supplied by FACT. The project can be set up on a Build,
Own, Operate and Transfer basis or as a Joint Venture. The scope of parties
shall include supply of Urea Plant, product handling and bagging facilities and
augmentation of utilities. Participation of FACT can include engineering and
project management services during project implementation and marketing of the
bagged products. The details of the scope and responsibility matrix for the project
shall be concluded after detailed discussions.
The indicative investment of the project is Rs 350 crore.
=================================================
FACT is producing Phospho-gypsum as a by-product during manufacture of phosphoric Acid at the rate of about 5 MT for every tonne of Phosphoric Acid produced. Over the years, more than 3.0 Million tonnes of accumulated Phospho-gypsum is stockpiled at our Ambalamedu as well as Udyogamandal premises near Kochi. The typical analysis of Phospho-gypsum is given below:
CaSO4 -- 95.32%
wt/wt dry basis
Total
P2O5 -- 1.047%
“ “
Water
soluble P2O5 -- 0.203%
“ “
Free
Moisture -- 20.42% wt/wt
The company proposes to set up a Building
Products Park near to its Gypsum Yard where prospective investors could set
up production units utilizing Gypsum.
FACT invites Expression of Interest from
interested parties for setting up manufacturing facilities for production of
value added products based on phospho-gypsum like plaster boards, panels,
tiles, bricks, load bearing construction materials, dental plasters etc. at
Ambalamedu on Build, Own and Operate basis.
The production facilities should comply with all the rules and
regulations of Central / State Governments / Pollution Control Boards and other
Statutory Agencies. The parties
may indicate the extent of land, license period expected, quantity of Gypsum & utilities required.
The technology for manufacture of non-load
bearing solid blocks using phospho-gypsum is available with FACT.
FACT will provide land on licence fee for 10 years or more depending on the project. Utilities to the extent possible and raw material Phospho-gypsum can be drawn on chargeable basis .
The capital investment for a 10 MT/Hr Calciner Plant will be about Rs 20 Crore and a 7,00,000 sq.
metre per annum capacity
Building Panel Plant will cost about Rs 22 crore. Investment varies depending on the type of
product and capacity of the project.
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5.
NEW
BUSINESS OPPORTUNITIES FOR JOINT VENTURE PROJECTS ON CAPROLACTAM /NYLON
The Petrochemical complex of FACT at Udyogamandal based on DSM
technology for production of 50,000 TPA of Caprolactam and 2,25,000 MTPA of
Ammonium Sulphate was commissioned in 1990. The complex also has of a 3 X 60
MTPD Furnace Oil/LSHS based Steam Generation Plant and 16 MW Captive Power
Plant apart from the storage systems for raw materials, intermediates and fuel
and utilities like nitrogen plant, cooling water system, DM water plant,
Instrument Air system etc. Caprolactam
and downstream products like nylon and nylon-based products have a growing
market. A proposal for capacity enhancement to produce 1,20,000 TPA of
Caprolactam is under consideration. In this context expansion of the complex
with back-end integration is considered.
The project envisages production of nylon and other downstream products
based on Caprolactam. Utilising Molten Lactam directly in the production
process would be very cost-effective and advantageous.
a)
Capacity
Enhancement & Marketing of Caprolactam
FACT operates a 50,000 MTPA Caprolactam Plant in its
Udyogamandal Complex. FACT intends to upgrade the plant with a proven,
low-sulphate process technology such that the production capacity is enhanced
to about 120,000 MTPA while restricting the co-generation of Ammonium Sulphate
to the present level of 225,000 MTPA or still lower. The proposal also includes
expansion of Caprolactam Marketing operations in the International Market.
Prospective investors could carry out the upgradation of the Caprolactam Plant
on a Joint Venture basis and also tie-up for marketing the product overseas.
b)
Downstream Integration
of Caprolactam
With the capacity enhancement of the existing
Caprolactam Plant of FACT in its Udyogamandal Complex, there is scope for
setting up downstream units based on Caprolactam. Prospective investors could
set up downstream units based on Caprolactam, on a Build, Own, Operate and
Transfer basis or as a Joint Venture Company.
FACT will provide developed land for setting up the
units and available infrastructure facilities. Parties interested in BOOT
participation can set up the downstream production facilities based on
Caprolactam produced at the Petrochemical complex. Participation of FACT can
include engineering and project management services during project implementation
and also marketing of end products. The details of the scope and responsibility matrix
for the project shall be concluded after detailed discussions.
FACT-Petrochemical
Division manufactures 50,000 TPA of Caprolactam (a monomer of Nylon-6) and
2,25,000 TPA Ammonium Sulphate (as 40 percent solution), Nitric acid (55
percent) and Soda Ash are byproducts of FACT-PD. Ammonium Sulphate Liquour produced in FACT-PD is sent to FACT-UD
where it is crystallized and sold as fertilizer.
The facilities at FACT-PD consist of the
following:
A. Main Plants:
1)
Hydroxyl
Amine Sulphate Plant (Hyam Plant) having a capacity of 114.2 MT/day of Hyam
(100%)
2.
Cyclohexanone
Plant (Anone Plant) having a capacity of 134.7 MT/day of Anone.
3.
Caprolactam
Plant (Lactam Plant) having a capacity of 152 MT/day of Lactam.
B. Utility Plants:
1.
Steam
Generation Plant having 3 boilers each with 110 ata steam generation capacity
of 60 MTPA. A 16 MW turbo generator is
part of the plant.
C. Offsite facilities:
i)
Nitrogen
plant of capacity 1000 NCMH
ii)
Instrument
air systems – 2 compressors of 1500 NCMH + 1 stand by
iii)
Main cooling
tower
iv)
Tank farms
v)
Ammonia
handling section for receipt and distribution of ammonia
D. Pollution Control Plants
i)
Waste water
treatment plant having aerobic and anerobic treatment facilities.
ii)
Soda ash
recovery plant
iii)
Purge
incineration plant
The
raw material requirements as to approximate quantity and source are tabulated
below.
|
Sl.No |
Raw material |
Annual Requirement |
Source |
|
1 2 3 4 5 6 7 8 9 |
Sulphur Dioxide Oleum Hydrogen
(100%) Ammonia Carbon Dioxide Benzene LSHS/Furnace Oil LPG Caustic Soda (100%) |
70000 TPA 69000 TPA 4600 TPA 78000 TPA 22000 TPA 50000 TPA 72000 TPA 480 TPA 6250 TPA |
Internal/From FACT-UD Internal/From FACT-UD Internal/From FACT-UD (Supplied as Syn.Gas) Internal/From FACT-UD Internal/From FACT-UD External External External External |
Inter connectivity:
Since FACT-PD and FACT-UD are neighbouring
units, the activities of both units are inter woven to the extent of sourcing
of raw materials and sharing the utilities and this inter connectivity is
highlighted below:
1)
As may be
seen from the table under raw materials FACT-UD is the supplier of some raw
materials to FACT-PD.
2)
FACT-PD
supplies 40% Ammonium Sulphate solution which is processed in FACT-UD and sold
as Ammonium Sulphate fertilizer.
3)
The Ammonia
Complex at FACT-UD also has a Steam Generation Plant having 2 boilers each with
110 ata steam generation capacity of 60 MTPH.
A 6 MW Turbogenerator is part of this plant. Consequently steam network of Ammonia Complex of FACT-UD and
steam net work of FACT-PD are interconnected.
FACT-PD can also supply steam to the Ammonium Sulphate Plant in FACT-UD
and supply and receive steam from Sulphuric Acid Plant in FACT-UD.
4)
Instrument
air, Nitrogen utilities of FACT-PD and FACT-UD are inter connected and also can
be operated independently.
5)
Cooling Water
supply from the Cooling Tower of respective Captive Power Plants of FACT-PD and
FACT-UD can be serviced independently and also can be inter connected.
6)
FACT-PD is
the nodal agency for supplying Ammonia to other divisions.
7)
The water
works to the complex is part of FACT-UD.
Hence Industrial Water for FACT-PD is received from FACT-UD.
8)
Apart from
the in-house generation of power from the Captive Power Plants, FACT-UD and
FACT-PD receive power from the Kerala State Electricity board. FACT-UD is the
nodal agency for distributing power.
The quality of our product, Caprolactam is
as listed below:
Solidification Point : 69oC (Minimum)
Colour (in 50% solution) : 5o Hazen
(Maximum)
Extinction (at 290nm in 50% solution) : 0.05(Maximum)
Permanganate Number (in 3% solution)
:10,000 Seconds(Minimum)
Alkalinity :
0.05 milli equivalents/Kilogram (Maximum)
Acidity :
0.05 milli equivalents/Kilogram (max)
Volatile Base : 0.50 milli
equivalents/Kilogram (Max)
Moisture :
0.10 %(Wt) (Maximum)
Cyclohexanone Oxime content : 5.0 Milligram /
Kilogram(Maximum)
Iron :
0.10 Milli gram / Kilogram (Maximum)
Matter insoluble in water : 5.0 Milligram / Kilogram (Max)
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