Gas force majeure hits Punjab

ISLAMABAD: Amid hot and humid weather, Sui Northern Gas Pipelines Ltd (SNGPL) has declared force majeure — a legal term that absolves contractual liability — for its inability to supply regasified liquefied natural gas (RLNG) for three weeks due to renewed tensions around the Strait of Hormuz.

This may significantly hamper the power supply from over 5,000MW of RLNG-based plants in Punjab and curtail the transmission of power from Sindh to upcountry load centres, resulting in higher loadshedding in the days ahead.

Informed officials said while rationing from already imported cargoes could help mitigate shortages, the government would have to increase dependence on the expensive spot market.

In separate letters to four RLNG-based power plants in Punjab, the Lahore-based SNGPL said it had been updated by Pakistan State Oil (PSO) that ‘the event of force majeure notified due to ongoing war in the Gulf region remains in effect and continues to prevent the performance of its supplier’s obligations under their LNG Sale and Purchase Agreements (SPAs)’.

SNGPL cites Hormuz tensions, cuts RLNG for three weeks to Aug 3; higher outages or fuel costs loom

It said PSO has also conveyed that “the regional military conflict remains unresolved and ensuing threats to security remain elevated”. Progressive resumption of operations is being initiated by the supplier — Qatar Energy — based on its assessment of the regional safety situation, its ability to provide adequate safeguards for its employees, and its capacity to manage operational constraints.

While an increase in the number of transits through the Strait of Hormuz has been observed, availability of safe transit remains intermittent and limited.

As notified by PSO, Qatar Energy has indicated that it is prevented from performing its obligations in connection with the delivery of cargoes scheduled for the period from July 14 to Aug 3, in addition to the cargoes previously notified to be affected. Moreover, Qatar Energy will also be prevented from fulfilling the current schedule for all subsequent cargoes listed in Annual Development Plan 2026, and it will update PSO to issue a revised ADP for the balance of the current contract year.

As a result of circumstances beyond SNGPL’s reasonable control, LNG supply continues to be disrupted. Consequently, SNGPL’s ability to perform its obligations under the GSA signed on Oct 29, 2016, including but not limited to supply of RLNG to power plants and compliance with the gas specifications, remains materially and adversely affected.

“Accordingly, the event of force majeure previously notified, continues under Article 13 of the GSA and SNGPL is relieved from its performance obligations to the extent and for the duration that such force majeure Event or its effects continue in accordance with” the GSA.

The notice said the SNGPL was monitoring the situation and coordinating with PSO to manage the impact on RLNG supplies and related operational effects. “The situation arising from the Force Majeure event and the surrounding circumstances remain highly uncertain”, it said, adding that any further developments would be updated accordingly, including any changes to affected cargo schedules beyond Aug 3.

Officials said this meant supply of LNG cargoes would mostly remain cut off till Aug 3. “Hence, power shortage and loadshedding will be happening in Upper Punjab and Northern Areas,” said an official, adding the Independent System & Market Operators might have to operate power plants on diesel, which will ultimately be too expensive, and consumers would suffer either because of higher power cuts or additional fuel costs in future.

Published in Dawn, July 9th, 2026 ...