LAHORE - Gas supply to fertilizer plants on SNGPL network was restored on Saturday excluding Dawood Hercules Fertilizers Limited situated at Sheikhpura, whose gas supply remained suspended.

The SNGPL based plants that include Pakarab, Engro Enven, Agritech and Dawood Hercules Fertilizers, with an accumulative urea production capacity of 2.2 million tons, have been facing huge gas curtailments throughout 2011 and since the beginning of 2012. Besides the 62 days of shutdown during 2012 to date, Dawood Hercules Fertilizers was shut down for 192 days, Engro Enven for 190 days, Agritech for 173 days and Pakarab for 144 days during 2011. In the absence of gas supply the fertilizer industry could only produce 4.9 million tons of urea against an installed capacity of 6.9 million tons in 2011. This record shortfall in the production of urea forced the government to spend nearly $800 million in precious foreign exchange for import of costly urea and further Rs. 54 billon as subsidy on imported urea to keep it at the price of locally produced urea.

While welcoming the government’s decision to resume supply of gas to Pakarab, Agritech and Engro Enven plants, the CEO Dawood Hercules Fertilizer, Rashid Lone regretted that DH Fertilizers is facing discriminatory treatment in the matter of supply of gas. He pointed out that DH Fertilizers remains the only fertilizer factory on the SNGPL network to which gas supply has not been restored.