Fertilizer manufacturers laud government’s intention to ensure gas supply to fertilizer plants

KARACHI: Fertilizer Manufacturers of Pakistan Advisory Council FMPAC, representative body of fertilizer companies lauded government’s intention to ensure gas supply for fertilizer plants on Sui Northern Gas Pipelines Limited SNGPL network by allowing them to buy gas directly from oil producing companies.

ECC in recent meeting passed summary that will allow SNGPL based fertilizer plants to buy gas directly from well head in order to reduce burden from gas distribution companies and ensure they get it without further curtailments. Executive Director FMPAC Shahab Khawaja appealed President Asif Ali Zardari, Prime Minister Raja Pervez Ashraf, Petroleum & Natural Resources Advisor Dr. Asim Hussain to immediately restore gas supply to SNGPL based fertilizer plants which are on verge of collapse.

Expressing full support for infrastructure development cess, he said FMPAC also support GOP’s decision to impose cess on gas usage for all sectors, especially, fertilizer plants as necessary tool to develop long term solution to energy crisis. He said low BTU gas fields not in use can be dedicated for fertilizer plants to reduce burden on SNGPL and save billions of rupees of subsidy government offers on imported urea.

He said in first 7 months of 2012, SNGPL based plants received gas for 2 months only. CNG, industries, power sectors get gas. If government resumes gas supply to SNGPL based plants, substantial reduction in local urea prices can be observed which will hugely benefit poor farmers, ensure timely, proper urea use for better crop production. Farmers face Rs 53 billion burden each year due to high urea price. Government should prioritize fertilizer as it supports agriculture, ensures food security in the country.