The Government of Pakistan has approved the allocation of gas from the Mari field, located in Daharki, District Ghotki, Sindh, to three major fertilizer plants: FFC in Karachi, Fatimafert in Sheikhupura, and Agritech in Daud Khel, the energy giant disclosed this development through a notice to the Pakistan Stock Exchange (PSX) on Thursday.
The company said this decision follows an agreement for the supply of both raw and processed gas to meet the growing energy needs of the country’s fertilizer sector.
Mari Energies said that approved gas allocations include 104 MMscfd for FFC (Port Qasim), 68 MMscfd for Fatimafert, and 50 MMscfd for Agritech, with a corresponding supply of processed gas to meet operational demands. The gas price at the delivery point will align with the wellhead price as determined by OGRA.
The new agreement requires the fertilizer plants to establish gas processing and compression facilities, ensuring smooth integration with the existing Sui companies’ network. MariEnergies will also facilitate third-party access arrangements for transportation of gas.
In addition, MariEnergies has been authorized to supply available volumes from other reservoirs to any of its customers, including SNGPL and SSGCL, as swing gas, should the need arise. The government also approved a deallocation of 110 MMscfd gas from the HRL reservoir, previously allocated to GENCO-II, and increased the allocation for Agro Fertilizer’s base plant to 105 MMscfd.
The announcement follows an earlier move to regularize the allocation of 110 MMCFD gas to SNGPL from Mari Deep, with the agreement expiring in June 2024.
With this development, Mari Energies aims to improve the efficiency and sustainability of gas supplies to the fertilizer sector, ensuring a stable energy source for one of Pakistan’s critical industries.