Gas Allocation from Mari Field Discoveries for Fertilizer Sector Approved

PAKISTAN – Energy

MariEnergies Limited has informed the Pakistan Stock Exchange (PSX) that the federal government has approved the allocation of gas from the Ghazij and Shawal discoveries in the Mari Field, located in Daharki, District Ghotki, Sindh, to key fertilizer manufacturers.

Under the approved allocation, Fauji Fertilizer Company (FFC) Port Qasim 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 Limited’s Daud Khel plant will receive 50 MMscfd of raw gas, translating into 38 MMscfd of processed gas.

MariEnergies stated that raw gas will be delivered to the respective fertilizer companies within the Mari gas field at designated delivery points. The gas price at the delivery point will be the applicable wellhead price as notified by the Oil and Gas Regulatory Authority (OGRA) from time to time. The fertilizer companies will enter into separate bilateral gas sale and purchase agreements with MariEnergies.

As part of the arrangement, the fertilizer plants will install their own gas processing and compression facilities for injection of processed gas into the Sui gas companies’ network. The customers will also execute third-party access arrangements with Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) in accordance with the Third Party Access (TPA) Rules, 2018 and the Pakistan Gas Network Code. For supplies to FFC Port Qasim, gas swap arrangements will be undertaken by SNGPL and SSGCL.

MariEnergies further noted that any surplus volumes from the Ghazij and Shawal reservoirs may be supplied as swing gas to its customers, including SNGPL and SSGCL, on an as-and-when-available basis. In the event of natural depletion of the HRL reservoir currently supplying fertilizer plants, the company may backfill depleted volumes from the Ghazij and Shawal reservoirs.

In a related development, the government has approved the de-allocation of 110 MMscfd of gas from the HRL reservoir in the Mari Field previously allocated to GENCO-II. Additionally, the existing allocation of 26 MMscfd gas to Engro Fertilizer’s base plant from the HRL reservoir has been enhanced to 105 MMscfd.

The government has also regularized and reallocated up to 110 MMscfd gas to SNGPL from the Mari Deep reservoir, an allocation that had expired in June 2024. – ER News Desk

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