ISLAMABAD: The federal government has approved the allocation of 222 MMCFD indigenous gas from the Ghazij/Shawal reservoir at Mari Gas Field to three fertiliser plants in a bid to stabilise urea and DAP prices. The decision, finalised by a committee led by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, will now go before the Economic Coordination Committee (ECC) for formal approval.
Under the plan, FFC Port Qasim, Fatimafert (Sheikhupura), and Agritech (Daud Khel) will receive 104, 68, and 50 MMCFD respectively. The fertiliser companies will invest over USD 200 million in processing facilities to handle the low-BTU, high-CO₂ gas before injecting it into the transmission network.
The move comes as GENCO-II’s 110 MMCFD HRL gas allocation is de-allocated due to poor off-take, with Mari Energies redirecting volumes to fertiliser producers. Currently, Pakistan’s fertiliser sector consumes over 877 MMCFD from Mari and other fields.
Officials said the fresh allocation would reduce dependence on costly RLNG subsidies, ensure uninterrupted fertiliser supply, and cut foreign exchange spending on imports. Full potential from Ghazij/Shawal—expected in 24 months—will further secure the sector’s feedstock needs, while temporary arrangements will keep FFC Port Qasim supplied on an “as-available” basis until then.
Story by Mushtaq Ghumman
