Agritech Halts Urea Production Amid LNG Supply Disruption

Agritech Limited (AGL) has announced the indefinite suspension of operations at its urea plant due to a disruption in the supply of Re-gasified Liquefied Natural Gas (RLNG). The company disclosed this development in a notice submitted to the Pakistan Stock Exchange (PSX) on Wednesday.

According to the notice, Sui Northern Gas Pipelines Limited (SNGPL) formally communicated to Agritech that a “potential event of force majeure” had been declared by the Liquefied Natural Gas (LNG) supplier. The company stated that the disruption in LNG supply is linked to the ongoing regional conflict in the Middle East, which has affected LNG production facilities and, consequently, the supply chain to Pakistan.

As a result, SNGPL informed Agritech that RLNG supply to its fertilizer plant would be suspended starting from 12am on Wednesday until further notice. Following this communication, Agritech confirmed that it has shut down operations at its urea plant for an indefinite period.

The company emphasized that this disclosure was made in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the relevant regulations. Agritech did not specify when operations might resume, stating only that the plant would remain closed until further notice from the gas supplier.

Sources indicate that the disruption in LNG supply has broader implications for industrial operations reliant on natural gas, particularly in the fertilizer sector. However, no further details regarding the impact on production volumes or potential mitigation measures were provided in the notice.

The situation remains fluid, with Agritech and other stakeholders awaiting updates from the LNG supplier and SNGPL regarding the restoration of RLNG supplies.