The federal government has approved the allocation and pricing framework for gas from the Ghazij and Shawal discoveries in the Mari gas field to three fertilizer plants, according to a disclosure submitted to the Pakistan Stock Exchange (PSX) by Mari Energies Limited.
The company said gas from the Daharki-based field in District Ghotki, Sindh, will be allocated to FFC Port Qasim (Karachi), Fatimafert (Sheikhupura), and Agritech (Daud Khel). The approved raw gas and processed gas allocations are as follows:
- FFC Port Qasim: 104 MMscfd raw gas; 80 MMscfd processed supply
- Fatimafert: 68 MMscfd raw gas; 52 MMscfd processed supply
- Agritech: 50 MMscfd raw gas; 38 MMscfd processed supply
Raw gas will be supplied at the delivery point within the Mari field, priced at the applicable wellhead price notified periodically by OGRA. Fertilizer producers will enter bilateral gas sale and purchase agreements with Mari Energies and will be responsible for installing processing and compression facilities to inject processed gas into the Sui companies’ transmission network.
Under the plan, the fertilizer plants will arrange third-party access with Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) for transportation under existing Third Party Access Rules and the Pakistan Gas Network Code. For FFC Port Qasim, SNGPL and SSGC will also make swap arrangements.
Mari Energies said it may also supply swing gas, on an as-and-when-available basis, to its customers, including SNGPL and SSGC. In the event of depletion of the HRL reservoir currently supplying fertilizer plants, volumes may be backfilled from the Ghazij/Shawal reservoir.
Separately, the government has de-allocated 110 MMscfd of gas from the HRL reservoir previously earmarked for GENCO-II. The allocation for Engro Fertilizer’s base plant has been enhanced from 26 MMscfd to 105 MMscfd. In addition, the earlier expired allocation of up to 110 MMscfd to SNGPL from Mari Deep has been regularized and reallocated.
