Engro Fertilizers Limited has received approval from the Government of Pakistan for an enhanced gas allocation from the Habib Rahi Limestone (HRL) reservoir for its Base Plant. The new allocation will provide 105 MMscfd of gas to the company’s operations, which had previously been subject to an “as and when available” basis.
The approval from the government ensures a stable and sufficient gas supply for Engro Fertilizers’ Base Plant, critical for its continued production activities. The company had previously faced fluctuations in its gas allocation, which often impacted operations. The new allocation guarantees a more reliable supply of gas for the plant’s needs.
In addition to this approval, the government has sanctioned a backup plan through Mari Energies Limited. Should the HRL reservoir experience natural depletion, Mari Energies will be able to provide supplementary gas from the Ghazij/Shawal reservoirs, ensuring uninterrupted supply for Engro and other consumers. This move is aimed at securing a consistent energy source for the fertilizer industry, which is vital for ensuring stability in Pakistan’s agricultural sector.
Engro Fertilizers’ enhanced gas allocation comes at a time when the company is focusing on maintaining and upgrading its infrastructure. It aligns with broader government efforts to support the fertilizer sector’s growth and sustainability.
This development follows Mari Energies Limited’s recent announcement of its own approvals to secure gas supply for three major fertilizer plants, reinforcing the ongoing efforts to stabilize the sector
