Gas supply to fertiliser manufacturers in Pakistan has been suspended as pressure mounts on liquefied natural gas (LNG) supplies. According to a report by Bloomberg, the disruption is linked to the war extending to the Strait of Hormuz, which is now, according to Iran, under their control.

Sui Northern Gas Pipelines Limited (SNGPL), the country’s largest gas distributor, informed customers that it would stop providing regasified LNG to fertiliser plants from midnight on Wednesday. 

The company said it had been notified of supply disruptions by Pakistan State Oil (PSO) five days after confrontations began in the Gulf.

Authorities are also reviewing gas allocations for other industrial consumers.

The disruption follows escalation after Israel and the United States carried out strikes on Iran, with Tehran responding through retaliatory attacks on regional bases. 

Shipping through the Strait of Hormuz has been affected. The strait is a waterway and a key route for global energy trade, including LNG exports from Qatar’s Ras Laffan facility.

During the previous energy crisis in 2022, triggered by Russia’s invasion of Ukraine, Pakistan faced difficulties securing LNG cargoes amid high spot prices and payment constraints.

According to an energy expert, Masanori Odaka, the situation “could be serious” if five or more LNG shipments are affected. Odaka added that current spot prices were beyond what Pakistan was likely willing to pay and that alternatives to sourcing LNG cargoes were limited. He also said a history of deferment and payment difficulties would put Pakistan at a disadvantage.

An LNG analyst at ICIS (Independent commodity intelligence services), Evan Tan, said Pakistan received two cargoes in March, making it possible to manage any immediate gap through domestic production and coal imports. He said the shortfall in April and May could rise to two or three shipments, which would be difficult to offset through local alternatives.

The matter was discussed at a meeting of the Petrol Monitoring Committee chaired by Finance Minister Muhammad Aurangzeb. 

Officials, at fhe meeting, stated that petrol and diesel reserves were at satisfactory levels.

Aurangzeb said the government was monitoring developments related to the Strait of Hormuz.

Officials also briefed the committee that contacts were underway with friendly countries to secure additional crude oil supplies.

Separately, the petroleum ministry said Pakistan had requested Saudi Arabia to route oil supplies through the Red Sea port of Yanbu to ensure steady supply during the war.

Petroleum Minister Ali Pervaiz Malik raised the issue during a meeting with Saudi Arabia’s ambassador to Pakistan, Nawaf bin Said Al-Malki, according to a ministry statement.

The minister said most of Pakistan’s energy imports transit through the Strait of Hormuz and that the government was monitoring the situation to maintain supply continuity.