Gas supply to fertiliser plants: FMPAC lauds government’s intention
August 19, 2012: Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC), a representative body of fertiliser companies has appreciated the government’s intention to ensure dedicated gas supply for fertiliser plants on SNGPL network by allowing them to buy the gas directly from oil producing companies.
ECC in its recent meeting has passed a summary that will allow the SNGPL based fertiliser plants to buy gas directly from well head in order to reduce the burden from gas distribution companies and to ensure that they get gas without further curtailments. Shahab Khawaja, Executive Director Fertilizer manufacturers of Pakistan Advisory Council (FMPAC) while appreciating the approval of summary by ECC, appealed to President Asif Ali Zardari, Prime Minister Raja Pervaiz Ashraf and Federal Minister for Petroleum & Natural Resources, Dr Asim Hussain to immediately restore gas supply to SNGPL based fertiliser plants which are on the verge of collapse.
In a recent press conference Dr Asim Hussain announced that Ministry of petroleum is contemplating to allow the SNGPL based fertiliser plants to buy the gas directly from well head in order to reduce the burden from gas distribution companies and to ensure that they get gas without further curtailments.
Showing its full support for infrastructure development Cess tax, he said that FMPAC also support GOP’s decision of imposing Cess on gas usage for all sector of economy, especially, fertiliser plants as a necessary tool to develop long term solution to the energy crisis in the country. He said that around 200 industrial units have gone to courts and obtained stay orders against imposition of Cess and on the other hand the Fertilizer Industry has been paying Cess and shall continue to do so in the larger interest of economy.
Shahab Khawaja, while appreciating Dr Asim Hussain and Dr Hafeez Sheikh for their understanding and support for the fertiliser sector said that there are ways to solve the crisis especially for the fertiliser sector as there are several low BTU gas fields which are not in use and can be dedicated for the fertiliser plants which would not only reduce the burden from SNGPL network but would also save billions of rupees of subsidy government has to offer on imported urea.
He said that SNGPL based fertiliser plants are facing permanent closure as out of first 7 months of 2012, SNGPL based plants received gas for 2 months only. He said that fertiliser sector is the only sector which is facing complete closure while CNG, industries and power sector are getting gas. He said that if government resumes gas supply to SNGPL based fertiliser plant, a substantial reduction in the domestic urea prices can be observed which will hugely benefit the poor farmers and ensure timely and proper usage of urea for better crop production. Farmers are facing 53 billion rupees of burden each year due to the high urea prices in the country.-PR