Mari Energies Clarifies No Decision Made on Gas Allocation

Mari Energies, one of Pakistan’s largest exploration and production companies, has stated that no formal decision has been made regarding the allocation of gas from the Ghazij/Shawal reservoir, clarifying that the matter is still under review. The company issued a notice to the Pakistan Stock Exchange (PSX) on Wednesday, saying that recommendations from a committee headed by the Deputy Prime Minister and Foreign Minister are yet to be finalized. “It is clarified that no formal decision on the gas allocation by the government has so far been made,” the notice read. The discussion surrounding the gas allocation was raised during a committee meeting on September 16, 2025, chaired by the Deputy Prime Minister. According to Mari Energies, the committee’s recommendations will be forwarded to the Petroleum Division for further consideration before the government gives its approval. Earlier reports from Business Recorder, citing sources, stated that the federal government had decided to allocate 222 million cubic feet per day (MMCFD) of indigenous gas to three fertiliser plants from Mari Gas Field. This allocation, at the prescribed price set by the Oil and Gas Regulatory Authority (OGRA), is aimed at stabilizing urea and DAP prices to keep them reasonable for consumers. The decision was reportedly finalized by the committee and is set to be presented to the Economic Coordination Committee (ECC) of the Cabinet for approval. Mari Energies, which operates the Mari Gas Field in Sindh’s Ghotki district, produces gas from multiple reservoirs, including the Habib Rahi Limestone (HRL), Sui Upper/Main Limestone (SUL/SML), Ghazij/Shawal, and Goru-B Deep. In 2016, the ECC authorized Mari Energies to redirect unutilized volumes of HRL gas to existing consumers, with a priority for the fertiliser sector. Since then, the company has diverted HRL gas, originally allocated to GENCO-II (Guddu), to Engro Fertilizer’s base plant, helping meet the sector’s growing demand.