SNGPL fails to restore gas supply to fertiliser plants
It may cause urea shortage, create black market of this essential commodity
Gas supply to all consumer categories connected with the SNGPL network has been restored but not for the fertiliser plants. PHOTO: FILE
LAHORE:
Sui Northern Gas Pipelines Limited (SNGPL) has stopped gas supply to at least two fertiliser plants despite the injection of re-gasified liquefied natural gas (RLNG) into the system from Monday.
Industry officials revealed that Fatima Fertiliser and Agritech plants had been idle since February 14 as natural gas supply to the two plants had not been restored.
The closure of the two fertiliser plants, if prolonged, could lead to urea shortage in the Kharif and Rabi sowing seasons. The Economic Coordination Committee (ECC) has already said in its decision, dated January 1, that gas supply should be ensured to fertiliser plants from the SNGPL network till further orders.
The ECC also indicated that priority should be given to fertiliser plants over power producers as far as gas supply was concerned. “With a view to fulfilling this requirement (continuation of gas supply to fertiliser plants), the gas allocation for power sector may be reviewed,” the ECC remarked.
The country has faced a massive gas crisis in the current winter season primarily due to delayed LNG shipments as the government wanted to probe the LNG and terminal deals struck by the previous government. The crisis was not limited to Punjab as after many years Sindh too suffered from gas shortage.
As a result, the government allowed the transportation of LNG cargoes, so the issue of low gas pressure and volumes could be addressed.
The crisis worsened when Engro Elengy Terminal Pakistan Limited closed for annual maintenance, causing trouble for the industries, domestic and commercial consumers.
At present, gas supply to all consumer categories connected with the SNGPL network has been restored but not for the fertiliser plants. According to the Ministry of Industries, SNGPL must comply with the ECC’s decision on continued supply till further orders.
However, SNGPL argued that the company was getting a low quantity of gas, though RLNG had been injected into the system. “We at least need 1,000 million cubic feet of RLNG per day (mmcfd), but we are getting 800 mmcfd at present; we are restoring gas supply, however, it will be a gradual process,” said an SNGPL spokesman.
“Apart from the low gas volumes, we have some outstanding dues, which the fertiliser sector has to pay to SNGPL,” the spokesman pointed out.
Agri experts said the closure of the two fertiliser plants may lead to urea shortage, which could create black market of the essential commodity.
Of the total urea production capacity of around six million tons per annum, the two plants manufacture around 0.8 million tons.
According to a report of the National Fertiliser Development Centre (NFDC), urea stocks at the start of 2019 stood at 180,000 tons. In January, the production was estimated at 435,000 tons and off-take was recorded at 550,000 to 560,000 tons, leaving only 60,000 to 70,000 tons as buffer stock, which is too low compared to the agreed 200,000 tons.
Published in The Express Tribune, February 20th, 2019.
Sui Northern Gas Pipelines Limited (SNGPL) has stopped gas supply to at least two fertiliser plants despite the injection of re-gasified liquefied natural gas (RLNG) into the system from Monday.
Industry officials revealed that Fatima Fertiliser and Agritech plants had been idle since February 14 as natural gas supply to the two plants had not been restored.
The closure of the two fertiliser plants, if prolonged, could lead to urea shortage in the Kharif and Rabi sowing seasons. The Economic Coordination Committee (ECC) has already said in its decision, dated January 1, that gas supply should be ensured to fertiliser plants from the SNGPL network till further orders.
The ECC also indicated that priority should be given to fertiliser plants over power producers as far as gas supply was concerned. “With a view to fulfilling this requirement (continuation of gas supply to fertiliser plants), the gas allocation for power sector may be reviewed,” the ECC remarked.
The country has faced a massive gas crisis in the current winter season primarily due to delayed LNG shipments as the government wanted to probe the LNG and terminal deals struck by the previous government. The crisis was not limited to Punjab as after many years Sindh too suffered from gas shortage.
As a result, the government allowed the transportation of LNG cargoes, so the issue of low gas pressure and volumes could be addressed.
The crisis worsened when Engro Elengy Terminal Pakistan Limited closed for annual maintenance, causing trouble for the industries, domestic and commercial consumers.
At present, gas supply to all consumer categories connected with the SNGPL network has been restored but not for the fertiliser plants. According to the Ministry of Industries, SNGPL must comply with the ECC’s decision on continued supply till further orders.
However, SNGPL argued that the company was getting a low quantity of gas, though RLNG had been injected into the system. “We at least need 1,000 million cubic feet of RLNG per day (mmcfd), but we are getting 800 mmcfd at present; we are restoring gas supply, however, it will be a gradual process,” said an SNGPL spokesman.
“Apart from the low gas volumes, we have some outstanding dues, which the fertiliser sector has to pay to SNGPL,” the spokesman pointed out.
Agri experts said the closure of the two fertiliser plants may lead to urea shortage, which could create black market of the essential commodity.
Of the total urea production capacity of around six million tons per annum, the two plants manufacture around 0.8 million tons.
According to a report of the National Fertiliser Development Centre (NFDC), urea stocks at the start of 2019 stood at 180,000 tons. In January, the production was estimated at 435,000 tons and off-take was recorded at 550,000 to 560,000 tons, leaving only 60,000 to 70,000 tons as buffer stock, which is too low compared to the agreed 200,000 tons.
Published in The Express Tribune, February 20th, 2019.