The Fertilizers and Chemicals Travancore Ltd. will close an ammonia tender for 15,000 mt April 28. The company is asking for two lots of 7,500 mt each to be delivered to Kochi May 28-June 1 and June 11-15. FACT is asking for offers to include 180 days credit.
The company is in the process of upgrading its facilities at Kochi. It recently received permission to upgrade its storage facilities. Currently, FACT can only hold 10,000 mt in its Kochi tanks. The upgrade will allow it to store 20,000 mt. FACT said the upgrade will allow for it to buy its ammonia in larger quantities and, thereby, pay less for transportation costs.
According to the tender documents, FACT needs 700mt/d for its operations. The company splits its ammonia purchases among domestic suppliers, import contracts and open tenders. Generally, FACT buys its ammonia from Arab Gulf suppliers. The tenders help set the Indian delivered price as well as helping peg the Arab FOB price.