Mari Energies Unlocks $483 million Additional Annual Revenue

• Wins $200m Boost, Gets 222 MMCFD Gas Nod for Fertilizer Sector

• Company shift from loss-making power deals and unlocks stranded reserves, boosts cash flows

The landmark move that unlocks stranded reserves, and moving it away from loss-making power sector allocations, and secures long-term cash flows.

“This is a game-changer for Mari Energies,” the executive said. “Not only does it ensure steady offtake from the new reservoir, it also cements our central role in the fertilizer value chain at commercial prices.

The math is compelling: Rs372 million per day, or Rs136 billion annually, in incremental topline revenues from the new allocation alone. In Pakistan, fertilizer demand is rising and the government prioritizing indigenous gas over expensive imports.

official said the company is also to takeover up to 45 per cent stakes in Orient Petroleum blocks in Khyber Pakhtunkhwa, Sindh and Punjab. 

Pivot From Power to Fertilizer

The move follows a high-level decision by a committee led by Deputy Prime Minister and Foreign Minister Ishaq Dar, which de-allocated 110 MMCFD from GENCO-II’s inefficient power plants and reassigned 105 MMCFD to Engro Fertilizer’s base plant. With most GENCO-II units already decommissioned, Mari is now free to pivot its reserves toward sectors with stronger cash flow, cutting future exposure to unpaid bills.

The numbers speak volumes: receivables from GENCO-II stood at Rs82 billion as of June 30, 2025 — including Rs16.1 billion in gas development surcharge, Rs18.7 billion in take-or-pay claims, and a staggering Rs47.2 billion in late-payment interest. By contrast, fertilizer producers represent a far more bankable customer base.

$200 Million Investment, Secure Offtake

Under the new arrangement, fertilizer makers including Fauji Fertilizer’s Port Qasim plant (104 MMCFD), Fatimafert (68 MMCFD), and Agritech (50 MMCFD) will install their own gas processing and compression facilities, requiring over $200 million in investment to handle the low-BTU, high-CO2 gas from Ghazij/Shawal. Gas will be priced at the OGRA-notified wellhead rate, eliminating subsidies and ensuring Mari Energies collects market-linked revenues.

The company already supplies over 375 MMCFD to seven fertilizer plants under contracts valid until 2029. With the fresh allocation, Mari’s total fertilizer-linked gas sales will top 877 MMCFD, making it the undisputed backbone of Pakistan’s urea and DAP production — and a hedge against costly imports.