Mari Energies Limited, one of Pakistan’s largest E&P companies, on Thursday informed that the federal government has approved fresh allocation and pricing of natural gas from the Ghazij and Shawal discoveries in the Mari field for key fertiliser manufacturers.
The listed E&P disclosed the development in its notice to the Pakistan Stock Exchange (PSX) today.
Under the approval, gas volumes have been earmarked for Fauji Fertilizer Company’s Port Qasim plant, Fatima Fertilizer’s Sheikhupura facility and Agritech’s Daud Khel unit.
As per the notice, Fauji Fertilizer Company’s Port Qasim (PQ) plant in Karachi will receive the largest share, with 104 mmcfd of raw gas translating into 80 mmcfd of processed supply, followed by Fatima Fertilizer’s Sheikhupura plant with 68 mmcfd of raw gas, 52 mmcfd processed and Agritech’s Daud Khel facility with 50 mmcfd of raw gas translating into 38 mmcfd processed.
It is pertinent to mention that the differential between raw and processed volumes is due to processing and compression losses before gas is injected into the Sui companies’ transmission network.
“The raw gas will be delivered to the respective fertiliser customers within the Mari gas field (delivery point). The gas price at the delivery point shall be equal to the applicable wellhead price as notified by OGRA from time to time.
“The respective fertiliser customers shall enter into bilateral gas sale and purchase agreements with MariEnergies,” it added.
The company said that the customers shall install gas processing and compression facilities for the injection of processed gas into the Sui companies’ network.
“Accordingly, the customers shall also enter into third-party access arrangements with Sui companies for transportation of gas to their respective plant sites under Third Party Access (TPA) Rules, 2018 and the Pakistan Gas Network Code.
“In case of supply of gas to FFC (Port Qasim), SNGPL and SSGC shall also make gas swap arrangements. In addition, MariEnergies may supply any available volumes from the above reservoirs to any of its customers, including SNGPL/SSGCL, as swing gas on an as-and-when-available basis,” MARI said.
The E&P shared that in the case of natural depletion of the HRL gas reservoir supplying fertiliser plants, MariEnergies may backfill the depleted volumes of its existing consumers from the Ghazij/Shawal reservoir.
Moreover, the government also approved the de-allocation of 110 MMscfd gas from the HRL reservoir in the Mari field previously allocated to GENCO-II. Further, the current allocation of 26 MMscfd to Engro Fertilizer base plant from HRL reservoir has been enhanced to 105 MMscfd.
“Additionally, the earlier allocation of up to 110 MMCFD gas to SNGPL from Mari Deep, which expired in June 2024, has also been regularised and reallocated to SNGPL,” the company informed.
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