Pakistani fertilizer producers plan $300 million investment to secure gas supply

A consortium of Pakistan’s leading fertilizer producers plans to invest about $300 million in infrastructure to ensure a stable natural gas supply for domestic fertilizer plants, according to a senior industry official. The project will focus on installing gas Pressure Enhancement Facilities at fields operated by Mari Petroleum, enabling sustained gas flows to fertilizer manufacturing sites.

The investment will fund compressors and related equipment to raise pressure at declining wells in the Mari gas field network in Sindh province. The facilities are intended to maintain a consistent feedstock supply to plants operated by Engro Fertilizers, Fatima Fertilizer, and Fauji Fertilizer, which rely heavily on natural gas as a raw material for urea production. Engro’s share of the capital expenditure is expected to exceed $100 million, with the project scheduled for completion within roughly 18 months.

The initiative comes as Pakistan faces declining domestic gas reserves and widening supply gaps between production and consumption. Industry executives say stabilizing gas flows to fertilizer plants is critical for maintaining domestic urea output and supporting food security in a country where fertilizer demand continues to grow alongside population and agricultural activity.

Sources: Arab News, Dawn, Profit by Pakistan Today