Govt to shift Agritech, Fatimafert on indigenous gas

Petroleum Division is actively working on shifting Agritech and Fatimafert fertilizer plants to indigenous gas.

Sources said that Petroleum Division requires time for shifting the plants from RLNG to indigenous gas and then operations of two plants at the SNGPL network. At present, discounted LNG supplies to agritech and Fatimert are going on till the finalization of the proposal.

At present, Agritech and FatimaFert are operating at subsidized LNG to produce urea till switching to indigenous gas.

The petroleum division has informed the economic coordination committee (ECC) that the proposal for shifting these two fertilizer plants to indigenous is under active consideration.

It said that a summary would be placed before Cabinet Committee on Energy (CCOE) as soon as the consultation with the relevant stakeholders on the Summary for CCoE is completed and the proposals are finalized.

The Economic Coordination Committee (ECC) has extended discounted LNG supplies to Agritech and Fatimafert until December 2022.

The goal is to increase local urea production to meet crop demand.

Recently, the government granted approval for importing urea at a higher price of over $500 per tonne compared to the local price of $200 per tonne.Cabinet division objects to granting exemption in urea import bypassing PPRA

The ECC meeting was presided over by Senator Mohammad Ishaq Dar, minister of federal finances.

ECC permitted the extension of the Prime Minister’s Relief Package and Sasta Atta Initiatives for KPK through USC until June 30, 2023.

It also approved the release of funds to SSGC for the provision of gas to Pakistan Steel Mills.

From October 2022 to December 2022, the ECC permitted Fatimafert and Agritech Ltd. to operate using subsidized RLNG.

However, the summary of the Petroleum Division’s plan to deregulate premium kerosene oil, light diesel oil, and E-10 was postponed.

ECC allowed the Ministry of Information and Broadcasting and the Ministry of Human Rights to receive technical supplementary grants.