OGDCL, Power Division Clash Over Uch Gas Field Utilisation in Draft IGCEP 2025–35

OGDCL-Project

ISLAMABAD: A dispute has emerged between the Oil and Gas Development Company Limited (OGDCL) and the Power Division over what OGDCL terms the “minimal consideration” given to the capacity utilisation factors of the Uch-I and Uch-II gas fields in the draft Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35, sources close to the NEPRA Chairman revealed.

In a letter to the NEPRA Chairman, OGDCL Managing Director and CEO Ahmed Hayat Lak criticised the Independent System and Market Operator of Pakistan (ISMO) for proposing sharply declining utilisation factors for the Uch plants — with Uch-I dropping from 67.9% in 2024 to zero by 2032–35, and Uch-II maintaining only 55.7% through 2025. Copies of the letter were also shared with the Petroleum and Power Secretaries.

Lak pointed out that while the IGCEP highlights the use of local coal, especially Thar coal, it overlooks the proven low-BTU gas reserves of the Uch field — a move he warned could jeopardise recoverable resources. Located in Dera Bugti, the Uch field supplies gas exclusively to Uch-I and Uch-II power plants. OGDCL has drilled 39 wells and installed processing facilities to meet its obligations under existing Gas Supply Agreements.

He explained that Uch gas, though low in calorific value and rich in acid gases such as CO₂ and H₂S, is ideal for power generation. The field’s reservoir comprises three lobes — eastern, central, and western — requiring precise management to prevent damage to the reservoir’s balance and maintain production stability.

The Uch field has produced over 2.7 trillion cubic feet (TCF) of gas since production began 25 years ago, with around 2.6 TCF still recoverable — enough for another 25 years at current output levels. A recent study by an international consultant confirmed rising water influx, particularly in the western lobe, warning that reduced gas production rates, as proposed in the IGCEP, could allow the aquifer to overtake the gas zone and sharply cut recovery potential.

To mitigate these risks, OGDCL is installing compression facilities — expected to be completed by June 2026 — and has drilled three infill wells to enhance recovery. Lak cautioned that reservoir failure would not only deplete a major indigenous energy source but also inflict heavy financial losses on OGDCL, the federal government, and the Government of Balochistan.

He urged NEPRA to revise the capacity utilisation factors for Uch-I and Uch-II upward in the IGCEP 2025–35, aligning them with the plan’s stated goal of maximizing domestic energy resources and reducing dependence on imported fuels.

Story by Mushtaq Ghumman

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