OGDCL to supply additional gas to Engro Urea Plant
The government has decided to allocate gas from Oil and Gas Development Company Limited (OGDCL)’s field to Engro Fertilizer to boost urea production.
It decided to allocate gas from OGDCL’s new gas discovery from Umair-01 well to M/S Engro Fertilizer to boost the supply of urea.
Umair-01 well in the Guddu block is located in District Ghotki Sindh Province. The Joint Venture of Guddu block comprises Oil and Gas Development Company Limited（OGDCL) as operator (70%) M/s SEPL (13.5%), GHPL (5%), and M/s IPR TOC (11. 5%).
M/s OGDCL requested for allocation of gas from Umair-01 to M/s Engro urea Fertilizer Plant. It had the existing Reti Maru Field infrastructure. From where the company is currently supplying raw gas M/s Engro Fertilizer. It also falls in the same block.
The gas from Umair-01 has a heating value of 755 BTU/SCF, pressure 300-40 with 5.7% of CO2, and 19. 7% Nitrogen. Therefore, it is not pipelined quality gas for injecting in either gas utility companies’ transmission systems.
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To bring the gas under the Companies’ acceptable specifications, a full processing facility and up-front compress required, which is not economically feasible at 2-2.25 MMSCFD gas production.
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Therefore, it would be more viable to connect the Umair well with the existing gas system of Reti Maru Field, located at a distance of around ten (10) Km.
The Petroleum Division has approved the Declaration of Commerciality (DOC) of Umair discovery, following Pakistan Petroleum (Exploration and Production rule 1986.
M/s. Engro Fertilizer Ltd has also expressed their interest in receiving the gas from Umair-01, which would allow their old plant to increase its urea sales and production and continue improving food security in the country.
Accordingly, Petroleum Division proposes to allocate up to 2.25 MMCFD gas from OGDCL’s Umair-1 to M/s Engro Fertilizer. However, it will be at a mutually agreed and negotiated price, under a Gas Sales Purchase Agreement (GSPA).
Moreover, gas supply will be subject to the approval of the Field Development Plan and Production Lease. The economic coordination committee (ECC) will accord formal approval on Friday.
