Agritech shuts urea plant after government suspends RLNG supply

Agritech Limited (AGL) has suspended operations at its urea plant after the government halted supplies of re-gasified liquefied natural gas (RLNG), underscoring the growing impact of regional supply disruptions on the country's fertilizer and energy sectors.

In a notice to the Pakistan Stock Exchange (PSX) on Monday, the fertilizer manufacturer said Sui Northern Gas Pipelines Ltd. (SNGPL) suspended RLNG supplies to its urea plant effective 12:00 a.m. on July 18.

"The suspension has been made pursuant to the decision of the Government of Pakistan due to disruption in RLNG supplies arising from the prevailing regional situation," the company said.

Agritech did not say how long the suspension would last or estimate its impact on urea production, sales or financial performance.

The shutdown comes as Pakistan faces mounting pressure on its gas supply chain following disruptions to LNG imports linked to renewed tensions around the Strait of Hormuz.

Earlier, SNGPL declared force majeure on RLNG supplies for three weeks after Pakistan State Oil (PSO) informed the utility that its LNG suppliers were unable to fulfill contractual obligations because of the ongoing conflict in the Gulf region. The disruption has raised concerns over fuel availability for RLNG-fired power plants and industrial consumers.

Officials have warned that reduced RLNG availability could affect electricity generation from more than 5,000 megawatts of gas-fired power plants in Punjab, potentially increasing load-shedding and forcing the government to rely more heavily on costlier spot LNG cargoes.

For Agritech, the latest suspension marks another setback after a series of gas supply interruptions over the past year.

The company resumed operations in February 2026 after annual turnaround maintenance and the restoration of gas supplies. However, production was halted again in April 2026 when SNGPL suspended gas deliveries following damage to a pipeline.

Recurring gas curtailments have remained a key challenge for Agritech, limiting production capacity and complicating efforts to improve cash flow and service debt.