ISLAMABAD: Liberty Daharki Power Limited (LDPL) has urged the government to intervene urgently to restore raw gas supplies to its 235-megawatt (MW) power plant, warning that the prolonged shutdown could increase electricity generation costs or lead to load-shedding.
In a letter to the relevant authorities, LDPL Chairman Mujahid Pervaz Chattha sought an urgent meeting to resolve a dispute over outstanding dues and restore supplies disconnected by Sui Northern Gas Pipelines Limited (SNGPL) on September 17, 2026, over non-payment.
LDPL said its 235MW combined-cycle power plant was operating at sixth position on the Economic Merit Order (EMO), in line with dispatch requirements communicated by the Independent System and Market Operator (ISMO), when the gas supply was suspended. The plant uses indigenous raw gas from Oil and Gas Development Company Limited’s (OGDCL) Qadirpur gas field.
The company warned that replacing its unavailable generation of 221MW with more expensive electricity from imported re-gasified liquefied natural gas (RLNG) or high-sulphur furnace oil (HSFO) could increase foreign exchange outflows by approximately $600,000 per day, or $18 million per month. Alternatively, a shortage of replacement generation could result in forced load-shedding, affecting industrial activity and economic growth.
LDPL disputed SNGPL’s claim of Rs24 billion in outstanding dues, describing the amount as exaggerated. According to the company, the net payable amount stood at Rs6 billion after accounting for pending adjustments. It attributed the dispute to the legacy of circular debt, which it said had been only partially addressed during negotiations with independent power producers (IPPs) in 2024.
The company also said it was bearing fixed operating and maintenance, insurance and administrative costs while the plant remained shut, without reimbursement from the power purchaser or the government.
Separately, LDPL Chief Executive Altan Waheed Malik declared an “Other Force Majeure Event” in a notice to the Central Power Purchasing Agency-Guarantee (CPPA-G), stating that the gas disconnection had forced the power complex to suspend operations at 11:06am on September 17.
Invoking Section 13.1(c) of the Power Purchase Agreement (PPA), dated November 26, 1995, as amended, LDPL maintained that the interruption was beyond its reasonable control and had prevented it from fulfilling its contractual obligations.
The company also cited Section 2.8 of the settlement terms incorporated into the PPA amendment agreement executed on October 15, 2021. According to LDPL, the provision addresses fuel-supply interruptions and provides for relief from certain contractual obligations, including the requirement to use backup fuel, under specified circumstances.
LDPL said it would remain excused from performing its obligations under the PPA until SNGPL restored gas supplies and pledged to keep CPPA-G informed of efforts to resume operations.
The company has urged the relevant authorities to resolve the outstanding dues dispute and restore gas supplies, stressing that restarting the plant would help maintain the availability of comparatively lower-cost electricity for the national grid.
Story by Mushtaq Ghumman
