Karachi, May 10, 2012 (PPI-OT): Gas supply from Sawan gas field has been restored which was closed for annual turnaround.
According to Alfalah Securities Limited, the field was closed on April 30 for annual maintenance due to which 72 mmcfd of gas was suspended. After the resumption the gas would be supplied to the industrial sector of Punjab. Four fertilizer plants on the SNGP network including Pakarab, Dawood Hercules, Engro’s new plant “Enven” and Agritech were closed due to suspended gas supply, which is likely to be provided with the gas supply to resume production which is positive for the said fertilizer companies.
Sawan field is located in Sindh with 15 wells, out of which 14 are in production and supplies gas to SSGC and SNGP. The field has an overall average 9MFY12 daily production of about 285 mmcf of gas. Sawan Field is operated by OMV Pakistan and PPL holds 26.18% stake in the field. Alfalah Securities Limited recommends a BUY on PPL with a DCF based target price of PkR 246 and FY13E P/E of 6.6x.