ECC rejects RLNG supply to urea fertilizer plant

January 04, 2023 (MLN): The Economic Coordination Committee (ECC) of the cabinet on Wednesday has decided that the Re Gassified Liquefied Natural Gas (RLNG) supply to fertilizer plants would be discontinued with effect from January 03, 2023.

Earlier, the Ministry of Industry and Production (MoI&P) submitted a summary on diversion of RLNG to Urea fertilizer plants up to January 31, 2023. 

The Committee also deferred a summary submitted by the MoI&P tabled on price fixation of imported urea with direction to work out and submit detailed mechanism of sharing of subsidy by provincial governments.

Furthermore, the ECC did not take any decisions regarding urea pricing and gas supply costs to save another Rs30 billion in subsidy against imported urea and subsidised gas supply to two plants.

To note, Agritech Limited (Agritech) announced than comapny is unable to produce Urea from January 04, 2023, amid the gas suspension from Sui Northern Gas Pipelines Limited (SNGPL).

On January 03, 2023, SNGPL informed the company that RLNG supply at the company's Urea Plant will be suspended from 0000 hrs of January 04, 2023, and will continue until further instructions from ECC.

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