Chronology Year Project Capacity KTAnnum Cost USD Million 1968 Base Case 173 43

Chronology year project capacity ktannum cost usd

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Chronology Year Project Capacity (KT/Annum) Cost (USD Million) 1968 Base Case 173 43 1970 - 1990 De-bottlenecking (small steps) 268 1993 Relocation of fertilizer plants from the US and UK to Daharki plant site 600 130 1995 750 kT Revamp 750 23 1998 850 kT Revamp 850 72 2002 Energy Conservation Project / EIP 900 8.5 2006 Marginal Capacity Enhancement project/ BMR 950 10 2007 -till date Demonstrated Capacity 975 Source: Engro Fertilizers Limited The Base Plant has been utilizing gas from the Mari gas field prior to the diversion of gas to Enven plant (explained below). Company is contractually entitled to receive 103 MMSCFD under the Gas Supply Agreement with Mari. Owing to gas shortfall in the country, the Company has been facing a curtailment of around 9% over Mari network. In 2010, about 10% (60 MMSCFD) of the gas from Mari field was diverted from fertilizer to power sector. Since then, all the fertilizer plants drawing gas from Mari field are operating at curtailed volumes. Expansion Plant (Enven) The Government invited bids for allocation of 100 MMSCFD gas in order to reduce reliance on imports under the Fertilizer Policy, 2001. The Policy also entitled the recipient of the gas to a reduced rate of USD 70 cent per mmbtu for the first 10 years. The Company was successfully allocated gas through a competitive bidding process from Qadirpur gas field (after its depletion, from the system) and signed a Gas Supply Agreement with SNGPL for supply of gas for 20 years which will expire in April 2027. Consequently, the Company embarked on a state of the art and most energy efficient urea plant with a total production capacity of 1,300,000 tons. The expansion project was undertaken at a total project cost of ~USD 1.1 billion with financing from consortiums comprising of both foreign and local lenders. The project was successfully completed in 2010. However, the declaration of commercial production (for accounting purposes) was delayed uptill June 2011 due to non availability of gas. The new plant has been built near its existing installation at Daharki, and has an already developed
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Page 43 of 94 structure for ancillary services. Hence, the expansion has not resulted in a significant increase in fixed costs. The expansion project has added a 2,194 tonnes per day ammonia plant licensed by Haldor Topsoe of Denmark. The urea plant having a daily capacity of 3,835 tonnes of urea is licensed by Snamprogetti of Netherlands and procurement was done through Saipem of Portugal. Key Highlights of the Project at the time of investment are as under: i. Largest single train urea plant in the world; ii. Biggest private sector investment of USD 1.1 billion,ever in Pakistan by a Pakistani company; iii. Amongst the most energy efficient plant of its size & capacity, with the lowest gas consumption per tonnes of Urea in Pakistan; iv. 100% NEQS (National Environmental Quality Standards) Compliant Plant.
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