Gas shortage declines urea production

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urea-543670_optSTAFF REPORT IBD: The fertiliZer sectors performance remained dismal during 2012 mainly due to the unprecedented cut in gas supply: hardly 4.1 million tons of urea was produced against an installed capacity of 6.9 million tons. The sharp decline in the overall production was mainly because of weak performance of SNGPL-based fertiliser plants, facing the worst-ever gas crisis.

“SNGPL-based fertilizer plants produced only 11.6 percent of their total urea production capacity. Urea production of such plants stood at 256,500 tons urea in 2012 against the total production capacity of over 2.2 million tons, which is lowest-ever output of these plants in any given year,” sources disclosed to this scribe.

They said that if the gas cuts continue this year, worst-affected fertilizer plants might be forced to default on their loan obligations.

The overall urea production is also very frustrating as the whole fertiliser sector, including plants on Mari as well as SNGPL network, produced 4.1 million tons of urea against 4.8 million tons produced last year against an installed capacity of 6.9 million tons. The overall production loss, sources said, comes out to be 2.8 million tons in a year.

Four fertilizer plants on the SNGPL network, including Pakarab, Dawood Hercules, Engros new plant and Agritech, remained the main victims of the gas shortage.


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Published in: Volume 04 Issue 04

Short Link: http://www.technologytimes.pk/?p=9979