Latest news with #EPQL
Business Recorder
12-07-2025
- Business
- Business Recorder
EPQL seeks PD's support for early gas supply from Badar field
ISLAMABAD: The Engro Powergen Qadirpur Limited (EPQL) has approached the Power Division for support in expediting the signing of a Supplementary Agreement (SA) to utilise low-BTU indigenous gas from the Badar-1 gas field. In a letter to the Power Division, EPQL CEO Adeel Qamar stated that the company operates a 225-MW power plant running primarily on permeate gas from the Qadirpur gas field under a Power Purchase Agreement (PPA) signed with the Central Power Purchasing Agency Guarantee Limited (CPPA-G) on October 26, 2007. Since the commencement of commercial operations in March 2010, the plant has maintained a high position in the Economic Merit Order (EMO) and supplied 18.9 billion units of electricity to the national grid with high gas-based utilisation. Engro Powergen plant: PD and CPPA-G at odds over gas pricing mechanism The EPQL claims that its operations have delivered substantial benefits to electricity consumers and the Government of Pakistan, including: (i) Rs 89 billion in savings through procurement of low-cost electricity;(ii) $1.6 billion in foreign exchange savings by using indigenous gas; and (iii) Rs 96 billion in revenue for fuel suppliers (SNGPL and OGDCL) from the sale of permeate gas that was previously being flared. 'These benefits were only possible due to the extensive cooperation and support from the Government of Pakistan and its departments, including PPIB, CPPA-G, and NTDC,' said Qamar. To address the declining gas supply from Qadirpur and to enhance the plant's utilization, EPQL, in collaboration with stakeholders such as PPIB and CPPA-G, explored alternative fuel sources. As a result, NEPRA, in its determination dated February 20, 2024, approved the use of low-BTU gas from the Badar-1 field as an additional fuel source for the EPQL's operations. Following NEPRA's approval, the EPQL entered into an agreement with Petroleum Exploration Limited (PEL) on August 5, 2024, for the supply of 8–13 mmscfd of low-BTU gas from Badar-1. Subsequently, the EPQL submitted a draft Supplementary Agreement to the PPA for CPPA-G's review on August 26, 2024, after detailed consultations. However, the company says the matter remains unresolved. 'We note with deep concern that, despite a lapse of 10 months, the matter is still pending with CPPA-G, delaying the opportunity for EPQL to generate additional electricity using low-BTU gas from Badar-1,' Qamar stated. EPQL says the infrastructure for gas supply from Badar-1 is fully operational, and off-take can begin immediately upon receiving the necessary approvals. The transaction is structured on a Take-and-Pay basis, meaning gas will only be used if it qualifies under the Economic Dispatch Merit Order. The company estimates that had the approval been granted by October 2024, it could have generated an additional 122 million units of electricity, resulting in:Rs 787 million in potential savings for power consumers, and$9 million in foreign exchange savings. 'We have consistently followed up with CPPA-G and responded promptly to all queries, but the approval remains pending. Given that we are currently in the peak summer season and relying on high-cost imported fuels for electricity generation, it is imperative to finalize the Supplementary Agreement without further delay,' Qamar added. The EPQL has urged the Power Division to facilitate the earliest possible approval to unlock the economic and operational benefits associated with the project. Copyright Business Recorder, 2025
Express Tribune
10-07-2025
- Business
- Express Tribune
Engro Powergen seeks early gas supply from Badar field
Listen to article Engro Powergen Qadirpur Limited (EPQL) has urged the federal government to expedite the long-pending approval of a supplemental agreement that will allow it to utilise low BTU gas from the Badar-1 field. In a letter sent to Power Division Secretary Dr Muhammad Fakhre Alam Irfan, EPQL Chief Executive Officer Adeel Qamar highlighted that despite completing all technical and procedural formalities, including infrastructure readiness and regulatory approvals, the supplemental agreement remains pending, which was submitted to the Central Power Purchasing Agency-Guarantee (CPPA-G) in August 2024. EPQL, which operates a 225-megawatt power plant primarily on permeate gas from the Qadirpur gas field, entered into an agreement with Petroleum Exploration Limited (PEL) on August 5, 2024 for the supply of 8-13 million cubic feet per day (mmcfd) of low BTU gas from Badar-1. It came after the National Electric Power Regulatory Authority (Nepra) formally approved the use of Badar-1 gas through a determination issued on February 20, 2024. However, the EPQL's proposal to amend its power purchase agreement (PPA) with CPPA-G to incorporate the use of this indigenous gas has yet to be approved. The company has cautioned that continuous delay not only undermines the use of cheaper domestic energy resources but also forces reliance on expensive imported fuels amid peak summer demand. In the letter, the company noted that if approval had been granted by October 2024, EPQL could have generated an additional 122 million units of electricity using the low BTU gas, resulting in estimated savings of Rs787 million for power consumers and $9 million in foreign exchange. 'Infrastructure is ready and we can begin immediate offtake. Moreover, the transaction is based on a take-and-pay model, meaning gas will only be utilised when it is competitive under the economic dispatch merit order,' the CEO said in the letter. Since commencing operations in March 2010, EPQL has contributed approximately 18.9 billion units of electricity to the national grid, saving the country an estimated Rs89 billion and $1.6 billion in foreign exchange by using indigenous permeate gas. The company emphasised that this track record of cost-effective generation underlines the urgent need to begin Badar-1 gas supply. While acknowledging past cooperation from government entities, EPQL expressed dismay over the current lack of progress and called on the Power Division to facilitate early approval of the supplemental agreement. Given the summer energy crisis, the company said that the delay was becoming increasingly costly and counterproductive to the national energy security goals.
