SNGPL Declares Force Majeure for RLNG Supply

Sui Northern Gas Pipelines Limited (SNGPL) has declared force majeure on its regasified liquefied natural gas (RLNG) supplies for three weeks, citing ongoing disruptions caused by heightened tensions around the Strait of Hormuz.

 

The supply disruption is expected to impact more than 5,000MW of RLNG-fired power generation in Punjab and reduce electricity transmission from Sindh to northern load centres, raising the likelihood of increased loadshedding during the current hot and humid weather.

 

Officials said the government may partially offset the shortfall by rationing existing LNG cargoes, but prolonged disruptions could force greater reliance on expensive spot LNG purchases.

 

In separate notices sent to four RLNG-based power plants, SNGPL said Pakistan State Oil (PSO) had informed the company that the force majeure declared by its LNG supplier remains in effect due to the continuing conflict in the Gulf region, preventing deliveries under existing LNG Sale and Purchase Agreements (SPAs).

 

According to SNGPL, PSO said regional security risks remain elevated, while supplier QatarEnergy is only gradually resuming operations based on safety assessments, workforce protection measures and operational constraints. Although vessel movements through the Strait of Hormuz have increased, safe transit remains limited and intermittent.

 

PSO further advised that QatarEnergy will be unable to deliver LNG cargoes scheduled between July 14 and August 3, in addition to previously affected shipments. The supplier also expects disruptions to subsequent cargoes under the Annual Delivery Plan (ADP) 2026 and will issue a revised delivery schedule for the remainder of the contract year.

 

SNGPL said the continued disruption to LNG supplies, caused by circumstances beyond its control, has materially affected its ability to fulfil obligations under the Gas Supply Agreement (GSA), including RLNG deliveries to power plants and compliance with gas quality specifications.

 

The company said the previously declared force majeure remains effective under Article 13 of the GSA, relieving it of its contractual obligations for as long as the disruption persists.

 

SNGPL added that it is working closely with PSO to manage the impact of the supply disruption and will provide further updates, including any changes to cargo schedules beyond August 3, as the situation evolves.

 

Officials warned that LNG supplies are likely to remain constrained until at least August 3, increasing the risk of power shortages and loadshedding across Upper Punjab and northern regions. They added that the Independent System and Market Operator (ISMO) may have to dispatch diesel-fired power plants to bridge the shortfall, potentially leading to higher electricity generation costs that could ultimately be passed on to consumers.