Govt approves Mari field gas allocation for fertilizer plants
The Government has approved the allocation and pricing of gas from the Ghazij and Shawal discoveries in the Mari Field of Mari Energies Limited (PSX: MARI), located in Daharki, District Ghotki, Sindh, for supply to fertilizer plants.
Under the approved allocation, Fauji Fertilizer Company’s Port Qasim plant will receive 104 MMscfd of raw gas, equivalent to 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 plant will receive 50 MMscfd of raw gas (38 MMscfd processed).
| S. No | Fertilizer Plants | Raw Gas Allocation (MMscfd) | Processed Gas Supply (MMscfd) | Utilization Rate (%) |
| 1 | FFC (Port Qasim), Karachi | 104 | 80 | 76.90% |
| 2 | Fatimafert. (Sheikhupura) | 68 | 52 | 76.50% |
| 3 | Agritech (Daud Khel) | 50 | 38 | 76.00% |
The raw gas will be delivered to the respective fertilizer customers at the Mari gas field delivery point.
The gas price at the delivery point will be equal to the applicable wellhead price as notified by OGRA from time to time, according to the company’s statement on PSX revealed today.
The fertilizer customers will enter into bilateral gas sale and purchase agreements with Mari Energies.
The customers will install gas processing and compression facilities for injection of processed gas into the Sui companies’ network and will enter into third-party access arrangements with the Sui companies under the Third Party Access Rules, 2018 and the Pakistan Gas Network Code.
For gas supply to FFC (Port Qasim), SNGPL and SSGC will also make gas swap arrangements.
Mari Energies may supply any available volumes from the Ghazij/Shawal reservoirs to any of its customers, including SNGPL and SSGCL, as swing gas on an as-and-when-available basis.
In case of natural depletion of the HRL gas reservoir supplying fertilizer plants, Mari Energies may backfill the depleted volumes of its existing consumers from the Ghazij/Shawal reservoir.
The Government has also approved the de-allocation of 110 MMscfd gas from the HRL reservoir in the Mari Field previously allocated to GENCO-II.
The existing allocation of 26 MMscfd gas to Engro Fertilizer’s base plant from the HRL reservoir has been enhanced to 105 MMscfd.
Additionally, the earlier allocation of up to 110 MMscfd gas to SNGPL from Mari Deep, which expired in June 2024, has been regularized and reallocated.
