ISLAMABAD: The federal government has approved the allocation of gas from the Ghazij and Shawal discoveries in the Mari Field, Daharki, to three major fertilizer plants, aimed at ensuring sustained gas supply to the fertilizer sector and optimizing utilization of indigenous gas resources.
The decision has been disclosed by Mari Energies Limited to the Pakistan Stock Exchange (PSX) under material and price-sensitive information requirements.
Under the approved allocation, Fauji Fertilizer Company’s Port Qasim plant will receive 104 MMscfd of raw gas, translating into 80 MMscfd of processed gas. Fatima Fertilizer’s Sheikhupura plant has been allocated 68 MMscfd of raw gas (52 MMscfd processed), while Agritech’s Daud Khel facility will receive 50 MMscfd of raw gas, equivalent to 38 MMscfd of processed gas. The raw gas will be delivered at the Mari Field delivery point, and pricing at this point will be based on the applicable wellhead price as notified by the Oil and Gas Regulatory Authority (OGRA) from time to time
According to the disclosure, the respective fertilizer companies will enter into bilateral gas sale and purchase agreements with Mari Energies Limited. In addition, the fertilizer plants will be responsible for installing gas processing and compression facilities to inject processed gas into the Sui companies’ network. The companies will also enter into third-party access arrangements with Sui gas utilities under the Third Party Access Rules, 2018, and the Pakistan Gas Network Code. For gas supplies to FFC’s Port Qasim plant, gas swap arrangements will be made between SNGPL and SSGC
The government has also approved the de-allocation of 110 MMscfd gas from the HRL reservoir in the Mari Field that was previously allocated to GENCO-II. Furthermore, the existing allocation of 26 MMscfd gas to Engro Fertilizer’s base plant from the HRL reservoir has been significantly enhanced to 105 MMscfd, reflecting a major reconfiguration of gas allocations in favor of the fertilizer sector
In addition, the earlier allocation of up to 110 MMscfd gas to Sui Northern Gas Pipelines Limited (SNGPL) from Mari Deep, which had expired in June 2024, has now been regularized and reallocated. Mari Energies has also been authorized to supply any available volumes from the Ghazij and Shawal reservoirs to its customers, including SNGPL and SSGC, as swing gas on an as-and-when-available basis. In case of natural depletion of the HRL reservoir, Mari Energies may backfill volumes for existing consumers from the Ghazij and Shawal reservoirs
The disclosure underscores the government’s efforts to rationalize gas allocations, prioritize fertilizer production critical for food security, and improve flexibility in the use of domestic gas resources amid declining indigenous supplies.
