The government has issued directives to Sui Northern Gas Pipelines Limited for immediate suspension of gas supply to fertiliser sector and diversion of the gas to power sector. Accordingly, Engro Corporation and Dawood Hercules Corporation have been informed that the SNGPL disconnected the gas supply to their fertiliser plants.
Engro Corporation on Monday sent information to the Karachi Stock Exchange (KSE), saying that the SNGPL has disconnected gas supply to the new fertiliser plant of their 100 percent owned subsidiary, Engro Fertilisers Limited. "We have been assured that SNGPL remains committed to the rotational supply of gas between the four fertiliser plants on their network and consequently Engro's plant (along with one other) will be provided gas first once it is restored to the fertiliser industry as our 30 days supply was not completed," it added.
Dawood Hercules Corporation Limited (DHCL), in similar information sent to KSE said that SNGPL on June 17, 2012 informed them that in view of severe energy crisis/load shedding prevailing in the country, they have been advised by the government of Pakistan for immediate suspension of gas supply to fertiliser sector and diversion of the gas to power sector. "Accordingly, SNGPL has informed us that it will not be in a position to continue gas supply to DH Fertilisers Limited (a wholly owned subsidiary of Dawood Hercules Corporation Limited) till further instructions," DHCL said. "DH Fertilisers Limited as a consequence has been forced to shut down its plant," it added.