Pakistan's 2011 fertiliser output capacity drop to 71%

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Publish time: 29th February, 2012      Source: www.cnchemicals.com
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February 29, 2012

   

   

Pakistan's 2011 fertiliser output capacity drop to 71%

   

   

   

Hurt by gas shortages, Pakistan's fertiliser sector produced 4.9 million tonnes of urea against an installed capacity of 6.9 million tonnes in 2011, the worst in the industry's history.

   

   

SNGPL based fertiliser plants were the worst hit and managed capacity utilisation of just 31%.

   

   

Currently, all four fertiliser plants on the SNGPL network are facing a complete shutdown, which has resulted in a huge production and financial loss to these fertiliser plants.

   

   

The Dawood Hercules plant achieved capacity utilisation of 39% of capacity, Pak-Arab produced 27% of capacity, Agritech's output was 34% of capacity and Engro's new Enven plant managed to achieve 27% of capacity.

   

   

CEO Dawood Hercules Fertilizer, Rashid Lone said that SNGPL based plants could only produce 31% of their installed production capacity which resulted in billions of rupees of loss to the fertiliser industry which has invested over PKR$2.3 billion (US$0.03 billion) in enhancing its production capacity in last three years.

   

   

The government has had to import 1.45 tonnes of urea at a cost of PKR$783 million (US$8.61 million) and has also paid PKR54 billion (US$0.6 billion) subsidy to maintain the price parity with locally produced urea.