Gas diversion to power sector halts urea production

STAFF REPORT KHI: Gas supply to the Fauji Fertilizer Bin Qasim Limited (FFBL) remained suspended even after the passage of about ten days for which the company had to shut down its Urea plant, whereas its DAP plant continued to operate due to its lower gas requirements.

According to an official, the government had decided to curtail FFBLs gas for 3 days on rotational basis; consequently the companys gas would be fully restored by June 23, yet the situation persists.

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Clarity is yet to emerge on the duration of this rotational basis gas curtailment. With its urea plant is operating at 50 per cent capacity for the remainder of the year, taking total (urea) plant utilization for CY12 to 45 per cent. The DAP production meanwhile is expected to continue since it has a lower gas (pressure) requirement, and total capacity utilization in CY12 is assumed at 80 per cent.

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The gas curtailment to FFBL comes at the heels of the government decision to conduct an energy-efficiency audit in order to provide gas to efficient units on a priority basis.

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