Sources said that a meeting of the ECC chaired by Finance Minister Ishaq Dar was informed on Monday that under the Fertilizer Policy, 2001, shallow reservoir of Mari gas field were dedicated to the fertilizer industry and deep reservoir to the power sector. However, out of total 110 MMCFD gas available from deep reservoir, only 65 MMCFD gas is being utilised by M/s Foundation Power Company Ltd. The remaining 44 MMCFD gas earlier allocated to M/s Star Power Generation Limited for a period of 25 years is lying idle owing to a litigation initiated by the latter.
A proposal submitted by the Ministry of Petroleum and Natural Resources to the ECC for allocation of additional gas production from MPCL's existing reservoirs noted that as intimated by M/s Mari Petroleum Company Limited (MPCL), Mari deep reservoir is capable of adding 55-65 MMCFD additional gas subject to third party reserve certification.
While giving background, the ministry also referred to an ECC meeting dated 20.04.2016 that allocated 60 MMCFD additional available gas from Habib Rahi Limited (HRL) reservoir to TPSG/GENCO-II as well as 31 MMCFD to Engro Fertilisers Ltd and any unutilised gas volume available from the reservoir to fertilizer sector on MPCL's system.
The ministry stated that as of date, the available 31 MMCFD gas is being supplied to M/s Engro Fertilizer Ltd to continue its operations of producing approximate 58,000 metric tons urea per month. The supply of gas needs to be regularised enabling the company to formalise the gas sale invoices being raised to M/s Engro Fertilisers Ltd.
Meanwhile, M/s Mari Gas has conveyed that during the Phase-Il of the incremental production from HR reservoir, up to 45 MMCFD gas is also available for allocation to a prospective buyer ie GENCO-II subject to installation of compressor unit by the buyer. The ECC was further stated that in view of persistent deficit in power generation and demand, Ministry of Water & Power has been seeking further gas allocations for Thermal Power Station Guddu (TPSG/GENCO-II), besides MPCL is also willing to supply the additional gas to TPSG/GENCO-II. Accordingly, due to availability of additional 31 MMCFD and 45 MMCFD gas, the ministry proposes allocation of up to 50 MMCFD additional gas from HRL reservoir to TPSG/ GENCO-II subject to installation of compression plant by the GENCO-II and allocation of up to 26 MMCFD additional gas available from HRL reservoir to old plant of M/s Engro Fertilisers Ltd for continuous operation of the plant.
The ECC was also requested that the MPCL may be allowed to supply unutilised gas volumes of HRL reservoir, which become available due to operational exigencies from time to time, to its existing consumers including TPSG/GENCO-II on dedicated system at a notified price. However, preference may be given to fertilizer sector in pursuance of dedication of MPCL's shallow gas reservoir under the Fertilizer Policy, 2001. The ECC is said to have approved the proposal regarding allocation of additional around 50 MMCFD available gas from Habib Rahi Limestone (HRL) reservoir to Thermal Power Station Guddu (TPSG/GENCO-II) subject to installation of compression plant by TPSG/GENCO-II and allocation of additional up to 26 MMCFD available gas from HRL reservoir to old plant of M/s Engro Fertilizer Ltd for continuation of the plant.
Copyright Business Recorder, 2017