Islamabad: The federal government has approved the fresh allocation and pricing of natural gas from the Ghazij and Shawal discoveries in the Mari field for key fertiliser manufacturers, Mari Energies Limited informed on Thursday.
In a notice to the Pakistan Stock Exchange (PSX), the listed exploration and production company said gas volumes have been earmarked for Fauji Fertilizer Company’s Port Qasim plant, Fatima Fertilizer’s Sheikhupura facility, and Agritech’s Daud Khel unit.
Under the approved allocation, FFC’s Port Qasim plant will receive the largest share, with 104 mmcfd of raw gas, translating into 80 mmcfd of processed gas. Fatima Fertilizer has been allocated 68 mmcfd of raw gas (52 mmcfd processed), while Agritech’s Daud Khel plant will receive 50 mmcfd of raw gas (38 mmcfd processed). The difference between raw and processed volumes reflects processing and compression losses prior to injection into the Sui companies’ transmission network.
Mari Energies said the raw gas will be delivered at the Mari field delivery point, with pricing linked to the applicable OGRA-notified wellhead price. Each fertiliser company will enter into bilateral gas sale and purchase agreements with Mari Energies and will be responsible for installing gas processing and compression facilities.
The fertiliser producers will also sign third-party access agreements with SNGPL and SSGC under the Third Party Access Rules, 2018 and the Pakistan Gas Network Code to transport processed gas to their plants. For supplies to FFC Port Qasim, gas swap arrangements between SNGPL and SSGC will also be put in place.
The company added that any available gas from the Ghazij and Shawal reservoirs may be supplied as swing gas to other customers, including SNGPL/SSGCL. In the event of natural depletion of the HRL reservoir currently supplying fertiliser plants, Mari Energies may backfill volumes from the Ghazij/Shawal reservoirs.
Separately, the government has approved the de-allocation of 110 MMscfd gas from the HRL reservoir previously allocated to GENCO-II. The allocation for Engro Fertilizer’s base plant from the HRL reservoir has been increased from 26 MMscfd to 105 MMscfd.
In addition, the earlier allocation of up to 110 MMscfd gas to SNGPL from Mari Deep, which expired in June 2024, has been regularised and reallocated, the company said.
