Karachi, November 02, 2012 (PPI-OT): Dawood Hercules Corporation Ltd. has notified the Stock Exchange that the supply of gas has been resumed to DH Fertilizer Ltd. (DHFL) from October 31, 2012 after which the start up activities has been initiated to resume fertilizer production.
According to Alfalah Securities Limited, earlier, the gas supply to DHFL has been suspended by SNGP due to drop in gas pressure of about 70-80 mmcfd from the Qadirpur gas field. SNGP has also informed that the problem will not be resolved quickly so DHFL had shut down its plant from October 09, 2012.
The plant of DHFL is a wholly owned subsidiary of Dawood Hercules Corporation Ltd. (DAWH). Earlier, DHFL had filed a petition in the Lahore High Court (LHC) against SNGP where DHFL had appealed that the supply of gas to be made in accordance with the Gas Allocation and Management Policy 2005. In this regard, LHC had directed SNGP to supply gas to DHFL as per the allocation policy.
The supply of gas to the fertilizer company still seems unlikely to continue for long as Alfalah Securities Limited believes that the gas supply would again be curtailed on SNGP network after the winter takes its toll in full swing resulting in aggravating the gas demand supply gap.