Gulf conflict hits Pakistan fertiliser sector as Agritech shuts urea plant

The ongoing conflict in the Gulf is taking a toll on Pakistan’s local industries as Agritech Limited, a leading fertiliser manufacturer, has shut down its urea plant after Sui Northern Gas Pipelines Limited (SNGPL) notified it of a potential force majeure on liquefied natural gas (LNG) supplies, citing disruptions caused by the war in the Middle East.

“This is to inform you that Sui Northern Gas Pipelines Limited (SNGPL) has officially communicated to us regarding a ‘potential event of force majeure’ declared by the LNG supplier,” Agritech said in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“This situation arises from the ongoing regional conflict in the Middle East, which has disrupted LNG production facilities and subsequently affected LNG supply in the country,” it added.

The development comes after most tanker owners, oil majors and trading houses have suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz after Tehran warned ships against moving through the waterway.

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More than 20% of global oil is moved through the Strait of Hormuz.

“Due to this unforeseen development beyond reasonable control, SNGPL has informed that RLNG supply to our fertiliser plant shall stand suspended with effect from 00:00 hours on March 04, 2026, until further notice.

“Consequently, our urea plant operations are shut down until further notice,” added Agritech.

Agritech Limited was incorporated in Pakistan in 1959 as Pak-American Fertilizers Limited.

The company is engaged in the production and sale of urea and granulated single super phosphate fertiliser, and its products are sold under the brand name “Tara” in the fertiliser market.