Gas shortage forces Pakistan’s top fertilizer companies to halt Urea production
Three fertilizer plants halt operations
A fresh Pakistan fertilizer plants shutdown has affected Fatima Fertilizer, FFC Port Qasim, and Agritech Limited after the federal government reduced RLNG supply because of the current regional situation.
The suspension has stopped urea production Pakistan at all three plants, raising concerns about fertilizer availability if the disruption continues.
According to Muhammad Waqas Ghani, Senior Vice President and Head of Equity & Research at JS Global, the reduction in gas supplies left the companies with no option but to suspend operations.
Gas shortage disrupts urea production
The ongoing gas shortage Pakistan is expected to keep the plants closed until around the middle of August. However, officials say the timeline could change depending on the restoration of RLNG supply.
Industry experts believe the plants could restart operations even this week if gas supplies improve.
The latest Pakistan fertilizer plants shutdown comes despite recent government efforts to ensure uninterrupted gas for fertilizer manufacturers and support urea production Pakistan.
Government tried to avoid shortages
Earlier this month, the Economic Coordination Committee (ECC) approved gas arrangements for key fertilizer companies to help maintain urea production Pakistan ahead of the upcoming Rabi season.
Pakistan currently has enough production capacity to meet domestic demand under normal circumstances.
However, with Fatima Fertilizer, FFC Port Qasim, and Agritech Limited remaining offline, the Pakistan fertilizer industry could face pressure if gas supplies are not restored quickly.
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Industry watches gas supply closely
Experts warn that if the gas shortage Pakistan continues, the Pakistan fertilizer industry may see lower urea output and increasing pressure on existing inventories.
A prolonged RLNG supply disruption could affect fertilizer availability for farmers, especially before the Rabi crop season begins.
For now, the Pakistan fertilizer industry is waiting for the government to restore gas supplies so production at Fatima Fertilizer, FFC Port Qasim, and Agritech Limited can resume without further delays.