Karachi: Agritech Limited, formerly Pak American Fertilizers Limited, has re-started its urea plant today following the restoration of gas supply by Sui Northern Gas Pakistan Limited, the statement issued by Agritech at Pakistan Stock Exchange said.

The gas supply of the company’s urea plant has been restored by SNGPL, the statement said. The restoration followed the decision taken at a meeting of the Economic Coordination Committee of the cabinet on March 11, 2021. According to the decision, the ECC also allowed the provision of subsidised natural gas to two Punjab-based fertiliser plants—Fatima and Agritech—for nine months, with an additional subsidy of Rs 2 billion to Sui Northern Gas Pipelines Limited.

In July last year, the federal cabinet approved the gas supply restoration and directed the Ministry of Industries and Production to restore the supply.

The government directed SNGPL to resume gas supply to Agritech Limited and Fatima Fertilizers, which had remained closed due to the unavailability of feedstock since December 2019.  Agritech’s gas requirement is 28.5 mmcfd, and it can produce 1200 to 1300 tonnes of urea per day.

The Ministry of Industries and Production has estimated that urea demand will increase in the coming months, as the government’s recently announced multi-billion agricultural package—that subsidises fertilisers, seeds, pesticides, and tractors to farmers—will jack up demand for fertilisers.


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