Minister’s assurance to fertiliser units
ISLAMABAD, Aug 2: Responding to fertiliser shortages and its rising prices in the country, the government has asked the petroleum ministry to improve gas supplies to fertiliser units.
Chairing a meeting on Monday, Petroleum Minister Dr Asim Hussain assured fertiliser manufacturers that gas supplies would be enhanced and the plants would be able to operate at 80 per cent production capacity.
The fertiliser sector had been complaining of low urea production in the country which was leading to higher imports at costly rates.
During the meeting, the fertiliser producers stated that the government would require a heavy spending of over $927 million per year to import 1.7 million tons urea for agricultural needs, besides additional Rs47 billion subsidy to farmers due to gas shortage for fertiliser plants.
At present, four fertiliser plants on SNGPL are facing 74 per cent gas curtailment from July 15, 2011. Under current gas load management plan, SNGPL is providing gas to Engro, Pak-Arab, Pak-American and Dawood Urea Plants. These four plants have been divided into two clusters which receive gas for 15 days on rotational basis in a month.
Frequent startups or shutdown of plants pose serious threat of ammonia leakage at the plants that can be life-threatening for adjoining population.
The fertiliser producers said that due to low production of urea because of gas shortage, there would be a revenue loss of Rs40 billion to the companies and a tax loss of Rs10 billion to the exchequer per year
It was decided that 50mmcfd gas from KESC would be diverted to Engro fertiliser plant. Under this plan, Engro plant which is getting gas supply from SNGPL would be placed on SSGC system.
Currently due to shortages and expensive imports, dealers have started black-marketing of urea to farmers, who require it in massive quantities during this season.
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Mohammed Saleem Mansoori
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