Wedonay.com Report on Mar 7th, The Pakistani fertilizer industry is advancing a key investment plan to address domestic natural gas supply shortages. A consortium comprising major producers such as Engro Fertilizers, Fatima Fertilizer, and Fauji Fertilizer plans to invest approximately $300 million to install natural gas boosting facilities at the gas field operated by Mari Petroleum Company in Sindh province, aiming to ensure a stable supply of raw materials for fertilizer plants.

The project will focus on deploying compressors and related equipment to increase the pressure from declining wells within the Mari gas field network, thereby enabling continuous natural gas delivery to fertilizer manufacturing sites. Engro Fertilizers' share of the capital expenditure is expected to exceed $100 million, with the entire project scheduled for completion within 18 months. These facilities will provide a consistent supply of raw materials for plants that rely on natural gas to produce urea, supporting domestic fertilizer production capacity.

Industry executives point out that stabilizing the natural gas flow to fertilizer plants is crucial for maintaining urea production and ensuring food security. In Pakistan, fertilizer demand continues to rise alongside population growth and expanding agricultural activities, while declining domestic natural gas reserves are leading to an increasingly wide supply gap between production and consumption. This investment is seen as a critical measure to alleviate supply pressure and support agricultural development.