Engro Fertilizers explores opportunities to export urea to South Korea

Pakistani company Engro Fertilizers is exploring the possibility of supplying urea to South Korea amid Chinese authorities' ban on mineral fertilizer exports due to the energy crisis.

Its representatives have already spoken with the South Korean ambassador to Pakistan.

According to Imran Ahmed, CFO of Engro Fertilizers, Pakistan was a net importer of urea until 2012. Then around Rs. 162 billion (approximately US$923.6 million) was invested in the country's chemical industry, which took to an increase of its capacity by two million tons.

"Once we obtain authorization from the government, we will be able to start deliveries in 30 days," he said, adding that the volume of urea production can be increased by another 800,000 tonnes if necessary.

Pakistan's chemical companies use natural gas to produce urea, whose reserves will last for at least a decade. According to specialists at Engro Fertilizantes, urea exports outside the country can move up to US$700 million a year.