KARACHI: Karachi-based Engro Fertilizers Limited is planning new investments and it develops plans to extend its production outside Pakistan in the Middle East and beyond, as the country is experiencing its worst energy crisis in decades due to a continued decline in gas production, a company official said. “The board has accorded conceptual approval to the proposed project and we are considering some African countries, the Middle East and the United States as the possible destinations for our overseas fertiliser plant,” Ruhail Mohammad, CEO of Engro Fertilizer, told The News. Mohammad said Engro is investing abroad, as its access to cheap natural gas at home is in doubt; the existing plants in the country are not running on full capacity, while plants on SNGPL network were closed. Pakistan is short of natural gas supplies to meet growing industrial demands. The country’s gas shortfall has widened to more than two billion cubic feet of gas/day, shutting factories and resulting in protests across the country. The government is looking towards liquefied natural gas imports as an alternate to the energy crisis and the planned import is expected to reach the country in March. “The gas reserves are fast depleting and if no new discoveries are made, there will be no gas for the industry in eight to 10 years. We have money now and we have an obligation to our shareholders; therefore, we have decided to tap offshore destinations,” Mohammad said. He estimated that one million ton capacity plant costs $1 billion, “but the company has not finalised the size of proposed plant as yet.” “The plan is in a preliminary stage and the size of the plant would depend on the prices of gas supplies,” Mohammad said. Mohammad said gas prices varied in different parts of the world. Prices were cheapest in the Middle East, but the regulatory regime was not comfortable, adding, Africa might be more suitable. He said Pakistan has the installed capacity of seven million tons of urea, while the country’s demand is around six million tons, but the production is limited to 4.7 million tons, compelling imports. To a question, he said the government should not accord gas to dual-fired power plants and the same should be given to the industry. “At the prevailing oil prices in the international market, importing furnace oil is much economical than importing urea,” he said. Moreover, Engro Fertilizers has also planned to enter in the marketing of other agriculture products such as pesticides, etc. “We will import insecticides and pesticides and then market the same in the local market,” Mohammad said. Engro Fertilizers Limited is a subsidiary of Engro Corporation and a renowned name in Pakistan’s fertiliser industry. It holds a vast, nationwide production and marketing infrastructure and produces leading fertiliser brands. Engro is also a leading importer and seller of phosphate products, which are marketed extensively across Pakistan as phosphatic fertilisers. In July last, Fauji Fertilizer Company unveiled plans for its Africa plant. The company has formed a consortium with foreign companies to invest at least $1.25 billion.
