Key Takeaways
- Agritech Limited has been informed of the suspension of re liquefied natural gas (RLNG) supply to its urea plant.
- The supply was halted at midnight on July 18, 2026, following a government decision.
- This disruption is expected to impact operations at the plant, which relies on RLNG for production.
Agritech Limited has announced that Sui Northern Gas Pipelines Limited (SNGPL) has suspended the supply of re liquefied natural gas (RLNG) to its urea plant. The suspension was implemented following a government decision, effective from midnight on July 18, 2026.
In a notice to the Pakistan Stock Exchange (PSX), Agritech stated that stakeholders will be informed once gas supplies resume. While the company did not explicitly announce the halt of production, the suspension is expected to affect operations at the urea plant, which relies on RLNG for its processes.
This latest disruption comes despite recent government efforts to maintain RLNG-based fertilizer plants operational in order to ensure domestic urea supply. The Economic Coordination Committee (ECC) had earlier this month approved continued gas arrangements for Agritech and Fatima Fertilizer, warning that prolonged supply disruptions could reduce local urea production.
Pakistan has sufficient installed urea production capacity to meet domestic demand; however, uninterrupted gas supply remains critical for fertilizer manufacturers, particularly those dependent on RLNG. The company had faced similar disruptions earlier this year due to regional tensions in the Middle East, which led to LNG supply interruptions and subsequently halted operations temporarily.
Agritech's previous experience with supply disruptions highlights the ongoing challenges faced by the sector. While production resumed after gas supplies were restored, the current situation underscores the vulnerability of RLNG-dependent plants to external factors such as regional conflicts.
The suspension is expected to have a significant impact on the company’s operations and may affect its ability to meet domestic demand for urea, which is crucial for agricultural activities in Pakistan. The government's decision reflects the broader challenges faced by the sector in ensuring consistent supply of essential resources.
