Fertiliser companies: Restoration of gas supply demanded

Curtailment is likely to increase urea shortage in Rabi season.

LAHORE: Fertiliser companies on Monday emphasised the need for an immediate and complete restoration of gas supply to plants on the Sui Northern Gas Pipelines Limited (SNGPL) network to ensure the urea demand and supply gap is reduced in the Rabi season which started on October 1.

Huge urea shortage will occur in the next couple of months if the government does not provide gas to fertiliser companies, said representatives of top fertiliser firms at a press conference.

Agritech CEO Bilal Jaudat, Engro Fertilisers CEO Khalid S Subhani, Dawood Hercules CEO Rashid Lone and Pak-Arab Fertilisers CEO Fawad Mukhtar said the recent curtailment in gas supply has disturbed urea production and downward price trend.

The companies highlighted that continued gas curtailment would lead to greater shortage for the Rabi season.

Subhani added, “The lesson for the government is simple – increased gas supply helps bring urea prices down and ensures urea supply to farmers.”

The fertiliser companies highlighted that at least 700,000 to 800,000 tons of urea would still have to be imported in the next two months.

Published in The Express Tribune, October 4^th, 2011.