SNGPL Hit by Gas Supply Crisis, Punjab May See More Loadshedding

Pakistan’s gas supply chain has suffered another setback after Sui Northern Gas Pipelines Limited (SNGPL) declared force majeure on the supply of regasified liquefied natural gas (RLNG), citing continued disruptions caused by security concerns around the Strait of Hormuz.

The development is expected to affect RLNG supplies to Punjab for nearly three weeks and could increase the risk of power shortages and higher electricity generation costs, reported Dawn.

According to SNGPL, Pakistan State Oil (PSO) informed the company that force majeure declared by its LNG supplier remains in effect because of the ongoing military conflict in the Gulf region. The disruption is expected to affect LNG cargo deliveries scheduled between July 14 and Aug. 3, limiting the availability of RLNG for power generation.

The gas utility issued separate notices to four RLNG based power plants in Punjab, stating that its contractual obligations remain suspended because the disruption is beyond its reasonable control. The company said the supplier, QatarEnergy, has started gradually resuming operations, but shipping through the Strait of Hormuz remains intermittent due to continued security risks.

SNGPL said QatarEnergy has also indicated that it will not be able to deliver additional LNG cargoes planned under the Annual Delivery Plan 2026 during the affected period. The supplier is expected to issue a revised delivery schedule for the remainder of the current contract year once operational conditions improve.

The supply disruption could affect more than 5,000 megawatts of RLNG based power generation in Punjab while also limiting electricity transmission from Sindh to northern load centers. Officials said authorities may have to rely on imported LNG purchased from the more expensive spot market or operate power plants on diesel to bridge the supply gap, both of which would increase generation costs.

Government officials said available LNG stocks may help reduce the immediate impact through rationing, but warned that consumers could still face higher loadshedding or increased electricity costs if the disruption continues beyond Aug. 3. SNGPL said it is closely monitoring the situation with PSO and will provide further updates as conditions evolve.