Gas curtailment plan for fertilizer industry to be reviewed

ISLAMABAD - In order to resolve the concerns of the fertilizer producers, Ministry of Industries and Production agreed to review the decision with regard to restoring of gas supply to the fertilizer industry, however the ministerial committee would take final decision in next week in this regard. It was agreed in the meeting of Federal Minister for Industries and Production with the representatives of fertilizer industry that gas curtailment plan needed to be revised and it should be ended as per earlier announced schedule (July). The meeting aimed to discuss the impact of 20 percent curtailment of gas from the fertilizer industry, following Energy Summit decision to continue supply of gas to power sector till October 31. However, the representatives of fertilizer industry showed concerns on it and demanded in the meeting to restore the gas supply to industry, as they believed that water situation had improved in the country, therefore power loadshedding would also reduce, sources informed. According to sources, due to the absence of three ministers including Federal Ministers for Power and Water, Food and Agriculture and Petroleum and Natural Resources, the Ministerial Committees meeting could not be held. Therefore Federal Minister for Industries and Production Mir Hazar Khan Bijarani held meeting with the representatives of fertilizer industry on their request. The recommendations of Tuesdays meeting would be presented in Ministerial Committees meeting next week, and if the committee agreed on it, then it would be tabled in the meeting of Economic Coordination Committee (ECC) for the final approval, source added. It was also agreed in the meeting that the idle gas (not to be used in the near future) should be diverted from Kandhkot and Mari deep to Guddu Power Plant immediately instead of curtailing the gas to the fertilizer industry The industry representatives also pointed out that by revamping Guddu, the same amount of power could be generated with much less gas. It was stressed that the Liquid Natural Gas (LNG) imports must be allowed to augment the countrys gas reserves that were insufficient to meet the rising demand particularly now that the LNG prices were globally very low. The Industry was assured that the 2001 Fertilizer Policy that dedicated the Mari shallow field to fertilizer sector and the 2005 Gas Allocation Policy were being followed and it was reiterated that the Government was committed to ensuring consistency in policy to facilitate the Industry. Secretary Industries and Production, Secretary Petroleum and Natural Gas, D.G. Gas, Additional Secretary MINFA, Adviser on Water and Power, Chief Fertilizer Cell, Planning Commission, and other concerned officers along with the fertilizer industrys representatives attended the meeting.

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