Gas supply to fertilizer plants may stop urea import

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STAFF REPORT IBD: The government is likely to shelve its plan to import 0.3 million tons of urea for Rabi season as the Petroleum Ministry after consultations with the local fertilizer industry has agreed to supply the required gas to the sector.

According to sources, 39mmcfd gas will be supplied to Dawood Hercules Limited from SNGPL system whereas Agritech Limited (former Pak Arab Fertiliser Limited) will get 22mmcfd gas from Makori East gas field. The 60 mmcfd gas being supplied to Guddu Thermal Power Station (GTPS) from Mari shallow by curtailing supply to Engro, 11 mmcfd from Maru and Reti Gas field and 9 mmcfd from another source was proposed to be diverted to Engro.

According to OGDCL website, the gas supply to Engro will started from Maru-1 to M/s Engro Plant at Daharki after completion of pipeline. This pipeline will be constructed and maintained by Engro.

Recently, the Ministry of Industries had recommended import of 0. 5 million tons of urea for Rabi but the ECC allowed import of only 0.2 million tons and constituted a committee under the chairmanship of Deputy Prime Minister, Chaudhry Pervez Elahi to probe the matter.

However, the ECC meanwhile approved long-term plan to supply gas to fertilizer plants and constituted a committee to develop modalities for legal arrangements for execution of the long term project.

The committee has now approved a short-term gas supply plan of fertilizer sector despite the fact that the ECC did not authorise it to take any such decision, the sources said.


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