The federal government has approved the allocation of 222 million cubic feet per day (MMCFD) of indigenous gas from the Ghazij/Shawal reservoir at the Mari Gas Field to three fertiliser plants, Business Recorder reported, citing sources.
The move, priced according to the Oil and Gas Regulatory Authority (OGRA) rates, is intended to keep urea and DAP prices at reasonable levels.
According to the reports, the decision was finalised by a committee led by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar and will be submitted for approval to the Economic Coordination Committee (ECC) of the Cabinet.
Mari Energies Limited, the operator of the Mari Gas Field in Ghotki district, produces gas from four reservoirs: Habib Rahi Limestone (HRL), Sui Upper/Main Limestone (SUL/SML), Ghazij/Shawal, and Goru-B Deep.
The revised allocation addresses longstanding challenges in the fertiliser sector. While several plants already receive gas from Mari and other fields, the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC) had requested indigenous gas for three previously excluded plants to ensure stable domestic fertiliser production.
After consultations, it was agreed these plants would be supplied from the Ghazij/Shawal reservoir without affecting existing allocations.
The allocation plans include: Fauji Fertiliser Company (Port Qasim, Karachi) – 104 MMCFD raw gas/80 MMCFD processed gas; Fatimafert (Sheikhupura) – 68 MMCFD raw/52 MMCFD processed; and Agritech (Daud Khel) – 50 MMCFD raw/38 MMCFD processed. Raw gas will be delivered within the Mari field, with the fertiliser companies responsible for processing, compression, and transportation through Sui networks under Third Party Access (TPA) rules.
Mari Energies will also have the flexibility to supply any available volume to other customers, including SNGPL and SSGCL, on a “swing volume” basis. In case of natural depletion of the HRL reservoir, Ghazij/Shawal gas may be used to backfill existing consumers.
The new arrangements are designed to stabilise the fertiliser sector, rationalise gas utilisation across energy and fertiliser industries, and reduce reliance on imported fertiliser. Overall, gas allocations from Mari Field will now total 597.5 MMCFD, supplemented by 58 MMCFD from SML/SUL and 222 MMCFD from Ghazij/Shawal.
This revised framework is expected to ensure uninterrupted production, secure domestic fertiliser supplies, and support price stability in urea and DAP markets.
