ISLAMABAD: Pakistan Petroleum Limited (PPL) has informed Petroleum Division that underutilisation of gas offtake by Genco-II (Guddu Combined Cycle Power Plant) is resulting in substantial financial exposure of the company, suggesting sale of gas to third party.
In a letter to Director General (Gas) Petroleum Division, Managing Director PPL referred to the Company’s previous correspondence of July 22, 2025 on the issue of “low gas offtakes by Genco-II/ re-allocation of surplus gas from Kandhkot Gas Field (KGF)” which had drawn attention of Petroleum Division to the continued low gas offtakes by GENCO-II from the Kandhkot Gas Field, an issue which had repeatedly been raised in earlier correspondence.
According to managing director PPL, for the period July 01 to August 31, 2025, average gas offtake by Genco–II from Kandhkot Gas Field remained at 115.9 MMScfd significantly below the Annual Contractual Quantity (ACO) of 130 MMScfd. Moreover, since 20th August 2025 offtakes further reduced to 100 MMScfd.
Kandhkot to third-party buyers: PPL seeks PD’s approval to redirect unutilised gas
According to PPL, this sustained underutilization of available gas has resulted in considerable financial exposure for PPL and has adversely affected reservoir management, field operations, and the deliverability of the field, while also disrupting optimal production planning.
In view of the current situation, PPL requested Director General (Gas) Petroleum Division to advise a suitable time for a meeting to discuss the proposal for reallocation of the surplus gas from Kandhkot Gas Field to third-party buyers on an “as and when available” basis.
Previously, PPL had requested the support of the Directorate General (Gas) to sell 50 MMScfd of surplus gas from its Kandhkot Gas Field (KGF) to a third party as GENCO-II (747 MW Guddu Thermal Power Plant) had failed to honour gas offtake. Additionally, PPL noted that the company missed its annual production targets for KGF while production from the adjacent Chachar Gas Field was completely halted since March 15, 2025.
In light of this, PPL urged the DG (Gas) to advise GENCO-II to honour its gas offtake commitments. More importantly, PPL requested approval to reallocate approximately 50 MMScfd of surplus gas from KGF to a third party to mitigate ongoing losses.
Copyright Business Recorder, 2025
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