Agritech’s urea plant shut as RLNG supply suspended

Web DeskWeb Editor

07th Jul, 2021. 05:31 pm
Agritech’s urea plant shut as RLNG supply suspended

KARACHI: Agritech Limited has notified that its urea plant operation was terminated as the supply of regasified liquid natural gas (RLNG) was suspended after just one day, a notice to the bourse said.

“The urea plant operations were resumed partially on July 5 but due to [the] load management plan of [the] government to meet power shortages, [the] supply of RLNG is again suspended on July 6, 2021. [The] company shall resume its urea production as soon as the RLNG supply is resumed,” it added.

Agritech Limited had earlier suspended the operations on June 29 to July 5, as the Sui Northern Gas Pipelines Limited (SNGPL) suspended RLNG supply during the period due to unplanned dry-dock activities at the Engro’s floating storage and regasification unit.

Strong and robust farm returns for the major crops, particularly wheat and sugarcane will help ensure positive off-takes landscape in the near future for both nitrogenous fertilisers lead by urea and phosphatic fertilisers.

The supply-demand gap of urea is likely to persist, as the recent increase in the international urea prices coupled with the devaluation of the rupee has resulted in a very high cost of imported urea that negatively impacts the foreign exchange reserves of the country.

The local production of urea helps the government save precious foreign exchange, as well as in terms of subsidy saving on expensive imports, besides further improving the large-scale manufacturing in the country.

The arrangement of RLNG supply at the capped price to the SNGPL-based urea plants is likely to continue during the year, as these provide a lesser cost option for the government.

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