Ghana, India yet to finalize gas price before start of $1b fertilizer plant

Ghana and India are said to be close to finalizing the price of gas for the proposed fertiliser factory to be set up in Ghana.

Finalising on the gas price is key before the execution of the factory by India’s state-run Rashtriya Chemicals and Fertilizers Ltd (RCF).

India could settle for a gas price anywhere between $2 and $3 per million British thermal units (mmBtu) for the proposed unit, according to a report by the Wall Street Journal-HT Media’s business news outlet, the Mint February 16, 2012 citing two Indian government officials familiar with the development.

Both, however, said that no final decision on the gas price has been taken yet.

The fertilizer maker, based in Mumbai, plans to secure fuel for the $1 billion project from the Ghana Oil Company to produce about a million metric tons of the soil nutrients annually, according to a Bloomberg news report in 2010.

A bulk of the produce is expected to be shipped to India if the project is completed.

By Ekow Quandzie