The M/s Fatimafert Limited (FFL) has reportedly expedited its efforts to get 66mmcfd low BTU gas of Mari Petroleum Company Limited's (MPCL) Goru Block, well-informed sources in Ministry of Industries and Production told Business Recorder. The Petroleum Division had floated a proposal recently before the Economic Coordination Committee (ECC), suggesting allocation of 66mmcfd gas from Mari field for setting up a combined-cycle thermal power plant.
However, the ECC did not approve the proposal and directed Ministry of Industries and Production to submit its proposal to allocate this gas to fertilizer sector.
The chief executive officer (CEO) FFL Fawad Ahmad Mukhtar has written a letter to Prime Minister's Advisor on Commerce, Textile, Industries and Production and Investment Abdul Razak Dawood, praising him for his continued guidance and support to the fertilizer industry. He said that FFT has been serving the nation since 1968 by providing affordable urea fertilizer to farming community. The FFT has severely been affected by gas shortages and only remained operational on system gas for limited periods from 2011. The table shows the operational days of the plant from 2011-2018.
The FFL operated for 171 days in 2011 followed by 20 days in 2012, 52 days in 2013, 39 days in 2014, 58 days in 2015, 268 days (operated on RLNG) in 2016, 85 days (operated on RLNG in 2017 and 65 days) operating on blend of system gas and RLNG in 2018. According to the fertilizer company, operation on RLNG at FFT resulted in a loss of Rs398 million and Rs 2.6 billion in financial year 2016 and 2017 respectively, adding that it can hardly be over emphasized that through initiation of fertilizer production on RLNG demand was entirely met through domestic production.
The CEO FFT, in his letter further stated that as per his understanding, ECC of Cabinet in its meeting held on December 4, 2018, has expressed its interest to allocate low BTU 66mmcfd of MPCL GORU-B gas to the fertilizer sector. He was of the view that that Fatima Group owns gas processing and pipeline infrastructure for treatment of low BTU gas, saying that allocation of this gas to FFT would be a win-win situation for all stakeholders and will contribute towards: (i) restart of operations at FFT which will add more than half a million MT urea fertilizer, ensuring food security of the country by timely availability of much needed urea for the farming community at affordable prices (ii) national exchequer by annual saving of foreign exchange of over $170 million, reduction of subsidy burden of Rs 12.5 billion on imported fertilizer and taxes to the tune of Rs 1.5 billion approximately (iii) revenues of MPCL will be enhanced through early monetization of GORU-B gases (iv) generation of tolling revenue to SNGPL for transportation of these gases to FFT factory flange by using existing assets on long term basis (v) contribution in GDP growth and continuous employment opportunities in the country. FFT has also sent the copy of letter to the directors general Gas and Petroleum Concession.
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