Agritech Urea Plant Halts Operations After RLNG Supply Suspension Linked to Middle East LNG Disruptions

Agritech Limited has announced a shutdown of operations at its Urea production facility following a suspension in the supply of Re-gasified Liquefied Natural Gas (RLNG). The development comes after the company received notification regarding a potential force majeure event declared by the LNG supplier, citing disruptions linked to ongoing regional tensions in the Middle East.

According to information disclosed to the Pakistan Stock Exchange (PSX), the LNG supplier invoked a “Potential Event of Force Majeure” after regional conflicts in the Middle East impacted LNG production facilities and disrupted supply chains that support international shipments. These developments have affected the availability of RLNG within Pakistan’s gas distribution network.

As a result of these supply disruptions, Sui Northern Gas Pipelines Limited (SNGPL), which is responsible for delivering RLNG to several industrial consumers in the country, has been unable to continue supplying gas to Agritech’s fertilizer facility. The company noted that the situation is beyond the operational control of SNGPL and has directly impacted its capacity to deliver the required RLNG volumes to the plant.

Due to the interruption in gas supply, RLNG deliveries to Agritech’s facility were officially suspended from 00:00 hours on March 4, 2026. Following the suspension, the company halted operations at its Urea manufacturing plant. The shutdown will remain in effect until further notice, depending on the restoration of RLNG availability and stability in the supply chain.

Fertilizer production plants such as Agritech’s Urea facility rely heavily on natural gas as a primary feedstock for manufacturing ammonia and other intermediate products required in fertilizer production. A disruption in gas supply therefore directly affects the operational continuity of these plants, often forcing temporary shutdowns until supply conditions stabilize.

The notification shared with the exchange indicated that the disruption stems from circumstances outside the control of both the gas distribution company and Agritech itself. The force majeure declaration by the LNG supplier reflects extraordinary conditions that prevent suppliers from fulfilling contractual obligations due to unforeseen events such as geopolitical conflict, supply chain interruptions, or operational damage to production facilities.

Officials stated that the current situation is being closely monitored by all relevant stakeholders. Coordination efforts are underway between Agritech, SNGPL, and government-designated LNG buyers to explore options that could minimize the operational impact caused by the supply disruption.

These discussions aim to identify possible solutions, including adjustments in LNG procurement or alternative supply arrangements, although no immediate timeline has been announced for the restoration of RLNG deliveries to the plant.

Agritech has also been advised to make necessary operational and logistical arrangements to manage the effects of the RLNG shortage. Such arrangements may include adjustments to production planning, resource allocation, and maintenance schedules while the facility remains inactive.

The company confirmed that the information regarding the shutdown and supply disruption was formally disclosed through a notification submitted to the Pakistan Stock Exchange, in accordance with regulatory requirements for publicly listed companies. These disclosures are intended to inform investors and stakeholders about material developments that may affect the company’s operations and performance.

The disruption highlights the broader challenges facing energy-dependent industries in Pakistan when international supply chains encounter instability. With LNG imports forming an important part of the country’s energy mix, disruptions in global LNG production or shipping routes can quickly translate into operational constraints for industrial facilities that rely on RLNG for continuous production.

For now, Agritech’s Urea plant will remain shut while stakeholders continue monitoring developments in LNG supply and regional conditions affecting global energy markets. The resumption of operations will depend on the restoration of RLNG availability and improved stability in international supply channels.

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