4 fertilizer plants to go operational soon Govt plan to save Rs160b
The Ministry of Petroleum and Natural Resources has sent a summary to ECC (Economic Coordination Committee) seeking approval of short and long-term plan for provision of gas to fertilizer industry.
As per the summary of which the copy is available to Pakistan Observer, the fertilizer plants in the jurisdiction of Sui Northern Gas Company Limited which are non-operational because of non-availability of gas will be made operational.
Pakistan is braving the loss of 27,00,000 tonnes in fertilizer production and owing to the shortage of fertilizer, the government is extending Rs 160 billion subsidy by importing the fertilizer at high cost and providing it to the farmers at local prices (cheap prices).
The fertilizers plant have also defaulted of Rs 10 billion of the banks because of their closure owing to non-availability of gas and in case the said plants are not made operational, then 15,000 people will directly be affected whereas 50,000 will be indirectly affected.
A top official told that Ministry of Petroleum and Natural Resources has architected a short and long-term plan to wriggle out the fertilizer industry from economic morass.
Under the short-term plan, with the increase in gas load shedding by one day more in a week, 55 million cubic feet per day gas (MMCFD) will be arranged for Pak-Arab and Daud Herculeus Fertilizers, 25 million cubic feet gas per day will be arranged from Makorhi for Agri Take, and 82 million cubic feet gas per day from Mari gas field for Engro Fertilizer.
Under the long-term strategy, some 202 million cubic feet gas per day has been allocated for the fertilizer sector, out of which 130 million cubic feet gas per day will be arranged from Kunarsi Deep, 22 MMCFD from Mari gas field, 15 MMCFD from Bahu field, 10 MMCFD from Raiti Maro and 25 MMCFD from Makorhi gas field will be provided to fertilizer sector. For the transportation of the 202 MMCFD gas per day to Fertilizer sector, a pipeline of 1000 kilometres at the cost of $ 400 million will be laid down.
The said cost will be arranged from the revenue the government is getting under the head of GIDC (gas infrastructure development cess) imposed on gas being used by fertilizer plants.
The Sui Northern will maintain the line from the revenue to be arranged from the GIDC which will be getting from all types of categories of gas consumers across the country and to this effect, if the government needs it necessary, it will change the rules of Ogra.