Fertilizers to get gas from Kunar Pasakhi
Karachi: The government has decided to put an end to gas curtailment for the fertilizer industry by allowing them to operate at 80% capacity in an attempt to overcome the fertilizer shortfall in the upcoming Rabi season.
According to Alfalah Securities Limited, the gas situation in the country would improve as the Kunar Pasaki Gas field would become operational from October 2011, which would approximately produce 282 mmcfd gas. The gas produced would then be distributed equally among SNGP and SSGC while another 30 mmcfd would be provided by the Qadirpur gas field as a new well would come into operations shortly.
The government would ensure uninterrupted gas supply to four fertilizer plants under the SNGPL network which would enable them to operate at 80% capacity and would also allow the government to reduce imports by 0.5 to 0.7mn tons.
Alfalah Securities Limited expects the fertilizer cos. on the SNGPL network especially ENGRO ENVEN 1.3 to benefit from this decision as they faced gas outages of 15 days a month and were operating at a very low capacity due to which they were compelled to increase urea prices.