ISLAMABAD: Engro Powergen Qadirpur Limited (EPQL) has called on the Power Division to fast-track the approval of a Supplementary Agreement (SA) that would enable the use of low-BTU indigenous gas from the Badar-1 gas field, aiming to boost electricity generation and reduce reliance on costly imported fuels.
In a letter to the Power Division, EPQL CEO Adeel Qamar highlighted the company’s successful track record, operating a 225-MW power plant primarily on permeate gas from the Qadirpur field under a Power Purchase Agreement (PPA) with CPPA-G since March 2010. To date, the plant has delivered 18.9 billion units of electricity to the national grid, maintaining a strong position on the Economic Merit Order (EMO).
Qamar noted that EPQL’s operations have yielded significant national benefits, including Rs89 billion in cost savings, \$1.6 billion in foreign exchange savings, and Rs96 billion in revenue for gas suppliers SNGPL and OGDCL.
Due to a decline in Qadirpur gas supply, EPQL explored alternate fuel options in coordination with PPIB and CPPA-G. NEPRA, in its February 2024 determination, approved the use of low-BTU gas from Badar-1. Subsequently, EPQL signed an agreement with Petroleum Exploration Limited (PEL) on August 5, 2024, for a supply of 8–13 mmscfd.
EPQL submitted a draft Supplementary Agreement to CPPA-G on August 26, 2024, but says the matter has been pending for over 10 months, delaying additional power generation.
The company stressed that the gas infrastructure is fully ready, and operations could start immediately upon approval. The project is structured on a Take-and-Pay basis, ensuring economic dispatch compliance.
Had approval been granted by October 2024, EPQL estimates it could have generated 122 million additional units of electricity, saving Rs787 million for consumers and \$9 million in foreign exchange.
With the country facing high-cost electricity generation during peak summer months, EPQL urged the Power Division to intervene and ensure swift finalization of the agreement to unlock the project’s full economic and operational potential.
Story by Mushtaq Ghumman
