The Competition Commission of Pakistan has approved the acquisition of a liquid carbon dioxide (LCO2) plant by Pak Arab Fertilisers Limited. This move allows the Fatima Group to enter the industrial and food grade carbon dioxide market. The transaction follows a merger review ensuring that the acquisition does not create unfair market barriers or significantly distort competition within the industrial gas sector in Pakistan.
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Fatima Group is moving into LCO2 production. It is a straightforward asset purchase from Pakistan Oxygen. Worth watching to see if they use this for carbon capture integration later.
The article mentions Pakistan Oxygen has a new air separation unit at Port Qasim that is beating design specs. I wonder what the actual energy intensity of that unit is compared to the older LCO2 plant being sold.
Industrial CO2 has steady demand in food and chemicals, but the real cost is always in the transport and storage of the liquid. Curious if PAFL has the logistics chain to make this plant profitable.
Typical Phase I merger review. The CCP is basically saying the market for liquid CO2 in Pakistan is fragmented enough that one more player moving in won't kill competition. No real policy shift here, just corporate shuffling.
