Private sector starts urea production to fulfil demand

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ISLAMABAD: The private sector on Wednesday started urea production at a concessional rate to fulfil this year’s demand.

According to sources, Agritech Limited has commenced urea production after starting its plant on Monday to heat it up to the required level. The process usually takes up to three days after the resumption of gas supply from SNGPL, they added.

As per the documents available with this scribe, the SNGPL on August 3 had informed Agritech Limited that RNLG supply to its fertilizer plant has been initiated for start-up purposes, asking the company to make necessary arrangements in this regard. 

SNGPL on Monday started supplying regasified liquefied natural gas to the plant at concessional tariff to meet the urea demand of the country.

Sources said that Agritech’s gas requirement stood around 28.5mmcfd and the plant can produce up to 1,300 tonnes of urea per day. The gas is being supplied to the plant at a highly subsidized rate of Rs756/mmbtu.

According to the National Fertilizer Development Centre, Urea inventory is expected to remain below the buffer stock level of 200,000 metric tonnes in December, January and February next year.

It is pertinent to mention that the federal cabinet had approved supplying RLNG at concessional tariffs to the plant for the next three months to meet the country’s urea demand. This timeframe will start from the day the plant gets started.

 

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