Fertiliser Manufacturers Pakistan Advisory Council (FMPAC) has pleaded to Prime Minister Mir Hazar Khan Khoso and Ministry of Petroleum and Natural Resources to resolve the crisis being faced by fertiliser industry due to continuous gas curtailment.
Shahab Khawaja, Executive Director FMPAC while appreciating the alternative long-term solution for four SNGPL based fertiliser plants said that the consortium of these four plants is engaged in hectic activities after the approval of long-term arrangement was conveyed to them by ministry but even with full fast track efforts; the long-term arrangement will not be completed before March 2014. Hence, next 12 months will be crucial for fertiliser industry. He pleaded Prime Minister to instruct SNGPL for full and immediate resumption of gas to most deprived SNGPL based fertiliser plants.
He further said that the industry in general and particularly the four plants located on SNGPL and FFBL plant on SSGC network have been the worst hit plants in 2012 and still, only Agritech and DH Fertilisers have started production in March 2013. It is critical that gas supply be resumed to all the plants on urgent and permanent basis for them to remain viable for longer run. He said that both economic and social adverse impacts will be irreparable if current gas suspension continues, as SNGPL based plants may have to shut down their business permanently causing huge financial losses to these companies beside bank default, rendering highly trained and specialised manpower jobless etc. He said that current situation of Pakistan's foreign reserves doesn't allow the country to drain hundreds of millions of dollar on importing urea, instead country can export extra urea after meeting the domestic requirements to earn the foreign exchange for the national exchequer.
He said that government should realise that why to waste money on import of a commodity in which we are self sufficient. He said that fertiliser sector is facing undue discrimination in the country. In the recent revised gas allocation priority, fertiliser Industry though most downgraded, is now bracketed with industry at No 3 behind domestic and power sector. Yet industries in general continue to get gas while fertiliser industry is deprived of this basic raw material for producing much required urea for the agriculture sector. Even CNG sector, which is last on priority list, continue to get Gas.
On the average, general industry received 50 percent gas on full load basis while fertiliser sector received less than 20 percent gas on 75 percent load basis. He strongly urged the ministry to take notice of this discriminatory treatment being faced by fertiliser Industry.
Shahab said that apart from SNGPL network based plants, SSGC based FFBL also remained shut down for 30 days in January and February 2013 alone due to complete closure of gas by SSGC. He said that on average FFBL faced 50 percent gas curtailment in just first 60 days of 2013. This may be pertinent to mention that SSGC is observing CNG holiday on its network for one day only.
Executive Director FMPAC urged the Ministry to direct SNGPL to restore gas supply to fertiliser plants on immediate basis. He said that long-term solution for SNGPL based fertiliser plants would only be viable option if these four plants survive until March 2014. He also urged the Ministry to direct SSGC to restore full committed gas supply to FFBL, which has been continuously facing adverse situation due to non-supply of full committed gas. He assured full co-operation to Ministry for solving the gas crisis in the country which is badly hurting the fertiliser sector and resulting in increased prices of urea in the country.
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