Pakarab Fertilizer allowed to build gas pipeline
Islamabad – Oil and Gas Regulatory Authority (OGRA) has granted Licence to Pakarab Fertilizer Limited for laying gas pipeline for the transmission of gas from Mari gas field to the fertilizer plant.
The Ogra’s decision will help to restart the Pakarab Fertilizer Limited Plant located in Multan which was non-operational since September 2017. Restart of operation at Pakarab Fertilizer Limited will add approximately half a million MT of Urea equivalent fertilizers.
The Authority under Sections22(1), 23(1)(a)(d) and 23(6) of the Oil and Gas Regulatory Authority Ordinance 2002 read with Rule 3(3) of Natural Gas (Licensing) Rules,2002 and Rule3(1) of Ogra Gas (third party access) Rules,2018, hereby grants a license subject to terms and conditions to M/S Pakarab Fertilizers Limited.
The Authority, after scrutiny of the application, hearing the argument of the applicant and the participants has arrived at the conclusion that the applicant fulfills the legal requirements and is entitled to the requisite license, said the decision.
“Construction and Operation of 24 Kilometer long pipeline of 16 Inch diameter for the purpose of transmission of natural gas from the Licensee’s processing facility located at the Mari Gas field to tie in point on the gas pipeline transportation system of Sui Northern Gas Pipeline Limited (SNGPL-The transporter) at Muhammadpur District Ghotki to fertilizers manufacturing plant at Multan,” said an Ogra decision issued here.
The license shall be valid for an initial term of seven years with effect from October 2019 unless revoked or modified or amended by the authority, said the Ogra decision.
Pakarab Fertilizers Limited(PFL) has applied under Rule 4 of the Natural Gas (Licensing) Rules,2002 on 20 August 2018 for the grant of license to undertake the regulated activity related to construction and operation of 16 inch and 24 Km long gas pipeline from processing facility to SNGPL Muhammadpur valve assembly for the transmission of Natural gas.
A representative of Pakarab Fertilizer Limited had informed OGRA that ECC on May 17,2018 had approved allocation of 75 MMCFD gas from Mari Gas field to PFL by using SNGPL system. As per ECC decision SNGPL will transport the gas from Muhammadpur valve Assembly to PFL plant at Multan under mutual agreed Gas Transportation.
During hearing PFL informed that the company has decided to lay its pipeline project because of devaluation and significant increase in RLNG prices and PFL can no more be able to operate on expensive RLNG. From 2011 onward the plant had been operated for a very limited time period. From 2015 to 2017, PFL operated on very expensive RLNG/blended gas. Due to devaluation and significant increase in RLNG prices.
It was informed that since September 2017 the plant is nonoperational. He further said that the pipeline capacity would be 110 MMCFD and it location would be from Pakarab Processing Facility(Shahbazpur Mari D&P lease area) Districit Ghotki and Metering station at Muhammadpur Ghotki.
The total cost of the project is Rs4 billion. PFL provide jobs to 2500 workforce and the resumption of gas supply will ensure their jobs continuation.