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

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........

© Dawn Business