Fertilizer company RLNG stopped urea production due to ban

Many businesses have closed or reduced operations, citing import restrictions, energy shortages and weak demand.

Pakistani fertilizer company Agritech Limited will not be able to produce more urea during liquefied natural gas (RLNG) regasification shutdowns, the company said in a filing on the Pakistan Stock Exchange (PSX) on Wednesday.

The development comes at a time when companies in various sectors have closed or halted operations citing import restrictions, energy shortages and lack of demand.

Sui Northern Gas Pipelines Limited (SNGPL) by letter No. BD/938 (LNG) dated January 3, 2023 has informed the Company that the supply of RLNG to its urea plant has been suspended effective January 4, 0000 AM. 2023. will be released and will continue until further instructions,” read Agritech Limited’s announcement.

“SNGPL said the suspension of RLNG supply is based on the Cabinet Economic Coordinating Committee (ECC) decision of 3 January 2023.

Therefore, the company plans to start plant operations as soon as SNGPL’s LNG supply is restored as it will not be able to produce urea during this time.”

The Ministry of Industries and Production had proposed a deadline of January 31, 2023 to divert RLNG to urea fertilizer plants, but the ECC after deliberations on Tuesday decided to reject the proposal and stop the supply of RLNG to these plants. January 3 from midnight

Agritech was incorporated in Pakistan on December 15, 1959 as an unlisted limited company. The main activity of the company is the production and sale of urea fertilizers and granular simple superphosphates.

According to Agritech, the plant is located 50 kilometers north of the town of Mianwali. Most of the product is sold within 150-200 km and claims to be the closest plant to fertilizer using Khyber Pakhtunkhwa areas.

Other businesses and sectors are also affected. On Tuesday, yarn maker Crescent Fibers Ltd decided to temporarily cut production by up to 50% amid global economic conditions and outlook.

Earlier, industrial pump maker KSB Pumps Company Limited (KSBP) said it would shut down factory operations from January 2 citing import restrictions.



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