The Economic Coordination Committee (ECC) of the Federal Cabinet has once again urged fertiliser manufacturers to pay over Rs450 billion in outstanding dues from the long-pending Gas Infrastructure Development Cess (GIDC) collected from farmers, The Express Tribune reported.
During a recent meeting, the Petroleum Division briefed the ECC on gas allocation from Mari fields and the fertiliser sector’s assurance that urea prices would not be increased. The Finance Division questioned how surplus re-gasified liquefied natural gas (RLNG) would be managed, how companies would be persuaded to settle outstanding GIDC, and what steps would be taken if firms failed to honour their price-stability commitments.
The GIDC was imposed to fund major pipeline projects, and the Supreme Court had directed all sectors to clear their liabilities in instalments during the previous PTI government. However, fertiliser producers did not deposit the amounts and later obtained stay orders from courts.
The Petroleum Division said interim arrangements were under consideration to manage excess RLNG volumes, while discussions on resolving the GIDC dispute were ongoing.
The ECC recommended establishing an implementation mechanism to ensure fertiliser firms maintain current prices and instructed the inter-ministerial committee, chaired by the deputy prime minister, to secure industry compliance.
The Ministry of Energy said a summary had been submitted to the deputy PM to ensure urea price stability ahead of the Rabi 2025 season. A detailed presentation was given to the fertiliser review committee on September 16, attended by ministers and sectoral stakeholders. The committee endorsed the Petroleum Division’s proposals and directed that a summary be submitted to the ECC after completing legal and procedural requirements.
Under the proposed plan, gas from the Ghazij/Shinwarz field would be allocated to Fauji Fertiliser Company, Fauji Fertiliser Bin Qasim and Fatima Fertiliser. Raw gas would be transported to the Mari field delivery point, where companies would install processing facilities to upgrade it to pipeline-quality gas. Estimated capital expenditure for handling high-CO₂ gas ranges between $60 million and $200 million, depending on each company’s tariff tier under the Fertiliser Policy 2001.
Mari-based units would integrate this processed gas into existing supply agreements with Mari Petroleum, with disputes handled through established contractual mechanisms. RLNG pricing for Engro, FFC’s base plant and enrichment facilities would continue at rates notified by Ogra, with diversions made subject to availability.
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