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Dedicated gas supply proposed to fertilizer plants – Alfalah Securities Limited

Karachi, December 06, 2012 (PPI-OT): The federal government is considering approving a plan to allocate natural gas to the Consortium of fertilizer plants from selected fields under dedicated supply arrangements. The consortium of fertilizer plants includes Pak-Arab fertilizer, DH Fertilizer, Agritech and Engro’s new plant which were facing severe gas outages on the SNGP network. The proposal includes that the gas price for each producer will be fixed under the applicable petroleum policies and / or the relevant gas pricing agreements. The aforementioned fertilizer plants are likely to benefit from the supply of gas supply once it is started and sustained on continuous basis which will be quite positive for ENGRO and DAWH.

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