The government''s decision to allocate 60 million cubic feet per day (mmcfd) of gas to Engro Fertiliser has created a rift among major players. According to officials in the Ministry of Petroleum, in 2011, to deal with the electricity crisis, the government cut 60mmcfd of the gas from three fertiliser plants - Fuji, Fatima and Engro Fertiliser - and supplied it to the Guddu power plant for a period of two years which expired on December 21, 2015. Before diverting gas to Guddu Power Plant the Fuji fertiliser was getting 34mmcfd of gas, Fatima 13.5mmcfd and Engro 12.5mmcfd, but after the closure Guddu plant, the government diverted entire quantity to Engro, which has created a rift among the two other contenders.
This transferred gas contained 34mmcfd gas of Fauji Fertiliser Company (FFC), approximately 12.5mmcfd of Engro, 13.5mmcfd of Fatima. Guddu Power Plant went out of operation and according to the arrangements; this 60mmcfd gas was to be reverted to its rightful owners since this Guddu power plant was not utilising this gas anymore. However, the government allocated the entire quantity of the 60mmcfd gas to Engro instead of giving the pre-allocated shares to all three fertilisers manufacturers. According to industry sources, ever-increasing gas prices in Pakistan (over $5 per MMBTU) are the highest in comparison with the international trends which showed a downward trend. It was viewed as a serious threat to the viability of domestic fertiliser industry. The industry, while highlighting its contribution towards food security and the national economy, urged the government to roll back the prices of gas in line with the PM''s Kissan Package.
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