Sui Northern Gas Pipelines Limited (SNGPL) has officially suspended its Re-gasified Liquefied Natural Gas (RLNG) supply to Agritech’s urea plant. This LNG supply halt took effect at 00:00 hours on July 18, 2026. Today, July 20, 2026, Agritech Limited formally communicated this material information to the Pakistan Stock Exchange (PSX) and the Securities & Exchange Commission of Pakistan (SECP).
The company filed this disclosure under Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the PSX Rule Book. Company Secretary Brig Tamour Daud Khan, SI (M), (Retd) signed the official notification. According to the letter, the Government of Pakistan initiated this decision due to RLNG supply disruptions arising from the “prevailing regional situation”. Furthermore, Agritech noted they will communicate any resumption of supply in due course.
Regional LNG Supply Crisis Forces Pakistan to Turn to Spot Market Tenders
Reportedly, Pakistan is cutting gas supplies to fertilizer producers again due to a severe LNG shortage. The recent closure of the Strait of Hormuz has choked Pakistan’s long-term supply from Qatar. Consequently, the country is forced to buy LNG from the spot market. Renewed tensions between the US and Iran are actively threatening these LNG supplies.
Furthermore, the broader US-Israel war with Iran has heavily disrupted Qatari shipments. QatarEnergy recently declared force majeure and extended this status to some European and Asian buyers until August or September. Therefore, even though the Strait of Hormuz has reopened, Pakistan will likely not receive its full long-term supply from Qatar.
To counter this shortage and meet rising electricity demands amid soaring temperatures, the government is scrambling for spot market cargo. State-owned Pakistan LNG Limited (PLL) recently floated its fifth tender in roughly three weeks. PLL invited bids from international suppliers for one spot LNG cargo scheduled for a July 27-28 delivery window on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi. Pakistan has already procured four cargoes for July. Notably, today serves as the final deadline for the fifth cargo bids, which the PLL will open on the same day.
Escalating Procurement Costs
Since the regional conflict began, Pakistan has received 10 LNG cargoes to manage the electricity shortfall. QatarEnergy supplied five cargoes under long-term contracts, while Pakistan procured the other five from the spot market. An upcoming delivery scheduled for July 21-22 marks the 11th overall cargo and the 6th spot market purchase.
Meanwhile, the cost of these spot purchases continues to climb. For the June 30-July 4 supply window, PLL accepted a sole bid from BP Singapore at $16.7372/mmBtu. Later, TotalEnergies Gas & Power Limited won the July 10-11 window with an offer of $17.3700/mmBtu. Subsequently, BP Singapore secured the July 15-16 slot at $18.2345/mmBtu. Most recently, the PLL board approved a bid from PetroChina Intl for the July 21-22 window at a staggering $20.6999/mmBtu.
