ISLAMABAD: Engro Powergen Qadirpur Limited (EPQL) has reaffirmed its interest in purchasing 50 MMCFD of low BTU gas from Pakistan Petroleum Limited‘s (PPL) Kandhkot Field for its power generation complex, on an “as-and-when available” basis.
In a letter to Imran Abbasi, CEO/MD of PPL, EPQL CEO Sameen Akhtar referred to previous communications regarding their interest in gas allocation from the Kandhkot field and the confidentiality agreement signed on February 22, 2023. EPQL has resubmitted its Expression of Interest (EoI) to acquire up to 50 MMCFD gas to support its 217 MW combined cycle power plant near Qadirpur, Ghotki, Sindh.
The power plant, which began operations on March 27, 2010, primarily uses low BTU Permeate Gas from OGDCL’s Qadirpur gas field. With the depletion of this gas supply leading to a Gas Insufficiency Phase in 2018, EPQL now relies on High-Speed Diesel (HSD) to make up for the gas shortfall, which is around 25,000 MMBtus/day, while full base load operations require over 43,000 MMBtus/day.
EPQL, holding a generation license from NEPRA and a Power Purchase Agreement with the Central Power Purchasing Agency (Guarantee) Limited, is actively seeking alternative local gas sources. The CEO of EPQL noted that Kandhkot gas, similar to Qadirpur gas in its low BTU and high sulfur content, would be a suitable supplement for the power plant, located just 30 km away from Kandhkot field.
EPQL emphasizes that this EoI is indicative for further discussions and that the final terms will be settled in a definitive agreement with PPL, pending technical due diligence and regulatory approvals.
Story by Mushtaq Ghumman
