While, the total urea production of the plants operating on Sui Northern Gas Pipeline Limited (SNGPL) in the first six months of 2012 remained at 198,000 tonnes against 297,000 tonnes in first half of 2011, again showing a decline of 33 percent. These plant were operated only at 18 percent of their capacity during January-June 2012 contrary to 25 percent last year.

This year, the fertilizer plants faced an estimated gas curtailment of 82 percent in which Agritech and Pak Arab got gas for 63 days each, while Engro Enven and DH Fertilizers got gas for 33 days each, the fertilizer sector sources told APP here Sunday.

They said that in first quarter of year 2012, all SNGPL based plants that included Agritech, DH Fertilizers, Pakarab, Engro's new plant as well as Sui Southern Gas Company (SSGC) based FFBL (Fauji Fertilizer Bin Qasim Limited) faced 53 percent revenue loss compared with first quarter of 2011. As the revenue generation remained at Rs8.16 billion in first quarter of 2012 against last year's Rs17.29 billion.

The fertilizer sector's sources further disclosed that in 2012, SNGPL based four plants as well as SSGC based FFBL lost profitability by 125 percent and made a collective loss of Rs1.076 billion, whereas the same plants had made profit of Rs4.3 billion in first Quarter of 2011.

To a question, they said, if the gas curtailment continues during rest of the current year, the SNGPL-based fertilizer plants would be forced to shutdown permanently, resulting in a massive lay-off skilled manpower, in addition to huge burden on the national exchequer for urea import to balance its demand and supply chain.

They said the government needed to support fertilizer industry to ensure cheap local urea to farmers and import fuel for the power sector and the industry which is more cost effective.