Gail signs MoU for gas-based fertilizer project.

GAIL (India) Limited GAIL has signed an MoU with Krishak Bharati Cooperative Limited and the Andhra Pradesh Economic Development Board. The pact is to explore a gas-based fertilizer project in Andhra Pradesh. The company joined Krishak Bharati Cooperative and the state board to study a gas-based fertilizer plant. The project aims to use natural gas as feedstock. It could open a new growth area for GAIL in the fertilizer sector. The key trigger is the MoU for a gas-based fertilizer project in Andhra Pradesh. This may draw attention to GAIL on diversification plans. Peers such as Chambal Fertilisers, Coromandel International and Deepak Fertilisers could face relative comparison on project pipelines. Risks include delays in final investment or feedstock supply issues. Competitors listed: Chambal Fertilisers, Coromandel International, Deepak Fertilisers. We have no financial interest in this news.