Pakistan Petroleum Limited (PPL) has informed the Petroleum Division that low gas offtake by Genco-II (747 MW Guddu Combined Cycle Power Plant) is creating significant financial exposure and operational challenges for the company. PPL has requested approval to redirect surplus gas from Kandhkot Gas Field (KGF) to third-party buyers, Business Recorder reported.
In a letter to Director General (Gas) Petroleum Division, PPL Managing Director referred to previous correspondence on July 22, 2025, highlighting continued low offtakes by Genco-II. Between July 1 and August 31, 2025, average gas consumption by the plant stood at 115.9 MMScfd, below the Annual Contractual Quantity of 130 MMScfd. Since August 20, 2025, offtakes have further declined to 100 MMScfd.
To mitigate losses, PPL has requested the Petroleum Division to facilitate a meeting to discuss reallocating approximately 50 MMScfd of surplus gas to third parties on an “as and when available” basis.
PPL said the sustained underutilisation has affected reservoir management, field operations, and production planning. The company noted it missed annual production targets for KGF, while production from the adjacent Chachar Gas Field has been halted since March 15, 2025.
The company also urged that Genco-II be advised to honour its contractual gas offtake commitments.
