Ogdc: Gas contract inked with fertiliser firms
Fertiliser firms will have to now build the infrastructure for implementation of agreement to receive gas from OGDC.
ISLAMABAD:
The Oil and Gas Development Company signed a direct gas sales agreement with fertiliser producers to supply gas to them from new or unutilised discoveries on a fast-track basis, according to a press release. After two months of the directions of the petroleum adviser to the energy and power companies to negotiate a supply agreement with fertiliser producers, OGDC managed to sign a contract with Dawood Hercules, Agri Tech, Pak Arab Fertilizers and Engro Fertilizers for provision of 130 million cubic feet per day of gas from Kunnar Pashaki Development project. Previously, the gas sale agreement of fertiliser companies were with the distribution companies i.e. Sui Southern Gas Company and Sui Northern Gas Pipelines. The fertiliser firms will have to now build the infrastructure for implementation of the agreement to receive gas from OGDC. Additionally, through this new approach the gas saved from the main SSGC and SNGPL system will be diverted to the starved domestic users.
Published in The Express Tribune, February 16th, 2013.
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The Oil and Gas Development Company signed a direct gas sales agreement with fertiliser producers to supply gas to them from new or unutilised discoveries on a fast-track basis, according to a press release. After two months of the directions of the petroleum adviser to the energy and power companies to negotiate a supply agreement with fertiliser producers, OGDC managed to sign a contract with Dawood Hercules, Agri Tech, Pak Arab Fertilizers and Engro Fertilizers for provision of 130 million cubic feet per day of gas from Kunnar Pashaki Development project. Previously, the gas sale agreement of fertiliser companies were with the distribution companies i.e. Sui Southern Gas Company and Sui Northern Gas Pipelines. The fertiliser firms will have to now build the infrastructure for implementation of the agreement to receive gas from OGDC. Additionally, through this new approach the gas saved from the main SSGC and SNGPL system will be diverted to the starved domestic users.
Published in The Express Tribune, February 16th, 2013.
Like Business on Facebook to stay informed and join in the conversation.