EPQL Seeks Green Light for Indigenous Gas

By Salman Khan

ISLAMABAD: Engro Powergen Qadirpur Limited (EPQL) has urged the federal government to expedite the long-pending approval of a supplemental agreement that would allow it to utilize low-BTU indigenous gas from the Badar-1 gas field.

In a letter dated June 27, 2025, addressed to Dr. Muhammad Fakhre Alam Irfan, Federal Secretary of the Power Division, EPQL’s Chief Executive Officer Adeel Qamar highlighted that despite completing all technical and procedural formalities—including infrastructure readiness and regulatory approvals—the supplemental agreement submitted to the Central Power Purchasing Agency (CPPA-G) in August 2024 remains pending.

EPQL, which operates a 225 MW 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 mmcfd of low-BTU gas from Badar-1. This move came after the National Electric Power Regulatory Authority (NEPRA) formally approved the use of the Badar-1 gas through a determination issued on February 20, 2024.

However, almost 10 months later, 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 warned that the continued delay not only undermines the use of cheaper domestic energy resources but also forces reliance on expensive imported fuels amid peak summer demand.

The letter 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 Rs. 787 million for power consumers and $9 million in foreign exchange.

“The infrastructure is ready, and we can begin immediate offtake. Moreover, the transaction is based on a Take-and-Pay model, meaning the gas will only be utilized when it is competitive under the Economic Dispatch Merit Order,” the CEO wrote.

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 Rs. 89 billion and $1.6 billion in foreign exchange by using indigenous permeate gas. The company emphasized that this track record of cost-effective generation underlines the urgent need to operationalize the Badar-1 gas supply.Ogra Increases LNG Prices

While acknowledging past cooperation from government entities such as CPPA-G, PPIB, and NTDC, EPQL expressed frustration over the current lack of progress and called on the Power Division to facilitate early approval of the supplemental agreement.

Given the ongoing summer energy crisis, the company warned that the delay is becoming increasingly costly and counterproductive to national energy security goals.