Fauji Fertilizer has confirmed that it is reviewing a coal gasification shift as a potential substitute for natural gas, exploring ways to use Pakistan’s vast coal reserves for long-term energy stability.
During a corporate briefing with Topline Securities, Fauji Fertilizer shared that it is studying a coal gasification project to diversify its energy sources. Management said the initiative aims to utilise Pakistan’s substantial coal deposits and reduce reliance on imported or scarce natural gas.
The company noted that the coal gasification shift remains in its early stages, with no estimates or timelines available yet. It added that updates will be shared once meaningful progress is achieved.
Pakistan holds nearly 186 billion tons of coal, mostly lignite in the Thar region, making it one of the largest coal reserves in the world and a potential backbone for industrial energy projects.
Fauji Fertilizer also revealed that it is nearing completion of its transition to full Shariah compliance. According to the briefing, the company’s focus remains on finalising the process soon.
Discussing broader sector expectations, management projected that industry urea offtake may reach 6.3 million tons in 2025, while urea inventory is expected to stay under one million tons by December.
For 2026, Fauji Fertilizer anticipates a rebound in the first half due to improved agricultural conditions and better crop economics for wheat and cotton.
The company also clarified that it is neither holding discussions with the government regarding urea exports nor considering export options at this time.