Agritech Limited (PSX: AGL) has temporarily halted operations at its Urea plant following a suspension of gas supply by Sui Northern Gas Pipelines Limited (SNGPL). The company confirmed the disruption in an official statement released on Monday.
SNGPL declared Force Majeure after pipeline damage caused by flash floods in the Baka Khel area. Gas supply will resume only after repair work is completed. Until then, the Agritech Urea plant will remain non-operational. The company promised to issue further updates as the situation develops.
Second Disruption in Weeks
This marks the second disruption to Agritech’s operations in recent weeks. On March 4, 2026, the company faced a shutdown at its Urea plant due to a suspension in Re-gasified Liquefied Natural Gas (RLNG) supply.
The March disruption was triggered by a “Potential Event of Force Majeure” declared by the LNG supplier. Ongoing regional conflicts in the Middle East affected LNG production facilities, which in turn disrupted domestic supply.
RLNG supply to the plant was halted from 00:00 hours on March 4. Operations resumed on March 13, when SNGPL restored the gas supply. The interruption lasted nine days, impacting fertilizer production and distribution schedules across Pakistan.
Impact on Fertilizer Production
The current shutdown highlights the vulnerability of fertilizer production to external factors. Natural disasters, such as flash floods, and international supply disruptions continue to pose risks.
Agritech’s Urea plant plays a critical role in Pakistan’s fertilizer supply chain. Any disruption affects agricultural output, especially during planting seasons when farmers rely on timely fertilizer availability. Market analysts warn that repeated shutdowns could strain local fertilizer stocks and push prices higher.
Coordination with SNGPL
Agritech is closely monitoring the situation. The company said it is coordinating with SNGPL to restore operations as quickly as possible. Safety remains a priority while repair work on the damaged pipeline is carried out.
“The plant will remain non-operational until the gas supply is restored. We are taking all necessary steps to resume production at the earliest possible time,” the company said in its statement.
SNGPL’s declaration of Force Majeure shields the utility from contractual obligations during events beyond its control. Pipeline damage due to flash floods in Baka Khel is considered a natural disaster under this clause.
Broader Industry Implications
Industry experts note that Pakistan’s fertilizer sector faces repeated risks from both domestic and global factors. Domestic gas supply remains the primary fuel for urea production, making plants highly sensitive to pipeline disruptions.
Internationally, regional conflicts and logistical issues can affect RLNG imports. The March RLNG disruption demonstrated how geopolitical tensions in the Middle East can indirectly impact local fertilizer production.
Repeated interruptions may also influence the Pakistan Stock Exchange (PSX), as investors watch the financial performance of fertilizer companies like Agritech. Operational shutdowns can lead to short-term losses and affect quarterly earnings.