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SNGPL directed to supply guaranteed gas to Engro Fertilizer – Alfalah Securities Limited

Date: October 20, 2011 Author: Web Desk Category: Brokerage Short URL Comments: 1

Karachi: In response to the petition filed by Engro Fertilizers, the Sindh High Court has directed Sui Northern Gas Pipeline Limited (SNGPL) to supply gas to Engro Fertilizer’s new plant “Enven1.3” according to its contracted quantity of 100mmcfd.

According to Alfalah Securities, Enven1.3, being the largest single train urea plant in the world with a total capacity to produce 1.3mn tons per annum, has been facing severe gas outages since the start of the month and has caused the plant to shutdown. Moreover, the upcoming winter gas load shedding was expected to further worsen the situation. The resumption of gas supply to Engro Fertilizers at 100 mmcfd would result in a relief to the largest urea manufacturer as it would allow them to produce urea at an optimum level and increase their operating cash flows, thus enabling them to repay its surging debt.

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1 Comments
  1. Date: November 17, 2011
    Author: ANJUM

    ENGRO WILL GET GAS DURING PPP GOVERNMENT OR THIS WILL BE JUST DREAM FOR ENGRO

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