The Econo-mic Co-ordination Committee (ECC) of the Cabinet has decided that 60mmcfd gas of Mari Shallow field would be diverted to the original three allocatees namely Engro Fertiliser, Fartima Fertiliser and Fauji Fertiliser proportionally.
Official documents available with Business Recorder reveal that the ECC was informed on February 18, 2016 that Ministry of Petroleum and Natural Resources allocated 183mmcfd gas to power sector with the approval of the then Prime Minister on April 23, 2010 by way of curtailment of 53mmcfd from M/s SNGPL's consumers, 70 percent mmcfd gas from M/s SSGCL's consumers and 60 mmcfd from Mari field based fertiliser plants.
Subsequently, 60 mmcfd of Mari Shallow gas was diverted to thermal Power Station Guddu (TPSG)/GENCO-II. Later on, pursuant to decision of the ECC on July 2, 2013 on the proposal of Ministry of Industries and Productions it was decided to divert 60 mmcfd Mari Shallow gas to fertiliser sector. Consequently, the said gas was diverted to M/s Engro Fertilisers Ltd's new plant from July 2013.
The ECC while considering a summary submitted by Ministry of Water & Power on December 24, 2014 approved the arrangement between TPSG/GENCO-II and M/s Engro Fertiliser Ltd for usage of 60 mmcfd Mari Shallow gas by M/s Engro Fertilisers Ltd till December 31, 2015 in lieu of installation of gas booster compressors for TPSG/GENCO-I1, at the cost of M/s Engro.
The documents further reveal that M/s Engro Fertiliser Ltd was willing to transfer/hand-over ownership of the gas booster compressor to TPSG/ GENC)-II in lieu of continuity of said 60 mmcfd gas supply to latter's plant till March 31, 2016, M/s Engro. Ministry of Petroleum & Natural Resources maintained that 60 MMCFD gas belonged to Mari- based fertiliser plants therefore the same should permanently remain with the fertiliser sector without affecting production of urea in the country. Under the Fertiliser Policy, 2001, the government has dedicated shallow reservoir of Mari gas field to the fertiliser industry whereas the deep reservoir has been dedicated for power sector, as it is suitable for power generation.
Ministry of Petroleum & Natural Resources submitted the following: (i) 60 MMCFD gas may immediately be diverted back to its original allocatees proportionally as per their initial allocation; and (ii) period of supply post expiry of December 31, 2015 as envisaged in the arrangement between Ministry of Water & Power and M/s Engro Fertilisers Ltd may be regularised till diversion of gas to its original allocatees. The Economic Co-ordination Committee of the Cabinet considered the hurriedly prepared summary of Petroleum Ministry regarding "utilisation of 60 mmcfd Mari Shallow gas" and approved that 60 mmcfd gas be diverted back to its original allocatees proportionally as per their initial allocation with effect from 22nd February, 2016 and the period of supply post expiry of the mutual agreement between Ministry of Water & Power and M/s Engro Fertilisers Ltd till diversion of gas to its original allocates, ie, December 31, 2015 to February 21,2016, be regularised. Prime Minister Nawaz Sharif had directed Ministry of Petroleum and Natural Resources (MoP&NR) a couple of months ago to ensure provision of 215 mmcfd gas to 747MW Thermal Power Station Guddu (TPSG) Genco-II by March 2016 positively.