Pakistan’s top fertilizer manufacturers are entering the big game alongside pioneers Mari Petroleum Company Limited (MARI) to help ensure gas flows and gas pressure for fertilizer production.
As per the notice shared by Engro Fertilizers Limited (EFERT) on PSX today, fertilizer manufacturers have entered into an agreement with MARI for the development of gas pipeline infrastructure and installation of gas compressors.
The EFERT filing read, “The Company along with other Fertilizer manufacturers (“Fertilizer Manufacturers”) have entered into an agreement with Mari Petroleum Company Limited (“MPCL”) for a project which is aimed to maintain MPCL’s Habib Rahi Limestone (HRL) Reservoir gas production plateau at the required delivery pressure for supplies to the Fertilizer Manufacturers (the “Project”).
The Project involves the construction of pipeline infrastructure and installation of compressors within the Mari Field, it added.
According to JS Global, the investment would require a significant amount and would be made over a period of time. Since MARI’s Habib Rahi Limestone (HRL) Reservoir is expected to show a depletion in reserves from the calendar year 2024 onwards, the said investment is being made to ensure adequate gas flows and pressure required for fertilizer manufacturing.
A similar notice is expected from Fatima (FATIMA), Fauji Fertilizer (FFC), and MARI as well. JS Global expects confirmation on the size of the CAPEX, which it does not rule out to cumulatively cost multi-billion rupees to the four companies.