Fauji Fertilizer Company plans to build new DAP plant

15:32 PM | February 5, 2021 | Neil Griffiths

According to local press reports, Fauji Fertilizer Company (FFC) is planning to build a new DAP plant in Pakistan with capacity to produce 1 million t/year DAP. The plan is dependent on FFC receiving a commitment that it will receive a supply of natural gas at a discounted rate for the first 10 years. Fauji has submitted a proposal to the government’s Petroleum Division seeking commitment of 30 MMscfd natural gas at a concessionary rate of $0.77/mmBtu, which has now been passed on to the Economic Coordination Committee for review.

Fauji’s existing DAP plant has capacity to produce around 800,000 t/y DAP, meaning the additional plant could increase Fauji’s total DAP production to around 1.8 million t/y. Total DAP demand amounted to 2.16 million t in 2020, with imports accounting for just over 1 million t of the total figure and the draw down in stocks just over 400,000 t.