ISLAMABAD:Engro Powergen Qadirpur Limited (EPQL) has voiced concern over a 10-month delay in regulatory approval to use low-BTU indigenous gas, warning it has already cost Rs. 787 million in savings and $9 million in forex.
In a formal letter sent to the Federal Secretary of the Power Division, Dr. Muhammad Fakhre Alam Irfan, EPQL CEO Adeel Qamar called for immediate intervention to approve a pending supplemental agreement with the Central Power Purchasing Agency (CPPA-G). The agreement would allow EPQL to use low-BTU gas from the Badar-1 field, a move aimed at addressing declining gas availability at the Qadirpur field and sustaining efficient operations at its 225 MW power plant.
Despite NEPRA’s determination issued on February 20, 2024, approving the use of low-BTU gas as a secondary fuel source, and a gas supply agreement signed with Petroleum Exploration Limited (PEL) in August 2024, the matter remains stalled at CPPA-G. EPQL submitted the required supplemental agreement on August 26, 2024, but is still awaiting approval.
“The infrastructure is ready, the agreement is on a Take-and-Pay basis, and the gas will only be utilized if it is economically viable,” EPQL’s communication noted, emphasizing that the opportunity to generate affordable electricity using domestic resources is being wasted while the country relies on costly imported fuels.
EPQL stated that had the agreement been approved in October 2024, it could have generated approximately 122 million additional electricity units during the ongoing peak demand season, easing pressure on the grid and reducing costs for consumers.
Since its commercial launch in March 2010, EPQL has contributed over 18.9 billion units of electricity to the national grid using permeate gas from the Qadirpur field. This has led to cumulative savings of Rs. 89 billion for power purchasers and $1.6 billion in foreign exchange by replacing imported fuels. Additionally, fuel suppliers such as SNGPL and OGDCL have earned Rs. 96 billion from sales of permeate gas that would otherwise have been flared.
The company stressed that the continued delay contradicts national interests at a time when power sector reform and cost optimization are urgent needs. EPQL urged the Power Division and all concerned agencies to expedite the approval process to unlock economic and operational benefits without further loss of time.
The letter was also marked to the Chief Executive Officer of CPPA-G and the Managing Director of the Private Power & Infrastructure Board (PPIB) for immediate follow-up.
Rihan Akhtar, Chief Executive Officer (CEO) of the CPPA-G was approached for obtaining the official position or reason communicated by CPPA-G for delaying the processing of EPQL’s supplemental agreement since August 2024. However, all efforts remained in vain as he did not appear to give the official words on said pertinent matter.
