ISLAMABAD: Pakistan Petroleum Limited (PPL) has requested the support of the Directorate General (Gas), Petroleum Division, to allow the sale of 50 MMscfd of surplus gas from its Kandhkot Gas Field (KGF) to a third party as GENCO-II (747 MW Guddu Thermal Power Plant) has failed to honour gas offtake.
Sources told Newzshewz that in a letter addressed to the Director General (Gas), the Managing Director of PPL cited persistently low gas offtakes by GENCO-II as a recurring issue that the company has raised repeatedly in meetings and previous communications.
According to PPL, GENCO-II has consistently lifted significantly less gas than the Annual Contracted Quantity (ACQ) of 145 MMscfd. Between July 1, 2024, and April 30, 2025, average daily offtakes were around 89 MMscfd. Since April 29, 2025, this figure has further dropped below 70 MMscfd, with some days seeing usage fall under 60 MMscfd.
The Managing Director stated that GENCO-II’s persistent underutilization is incompatible with the production potential of the Kandhkot Gas Field. This situation, he warned, is exposing PPL to substantial financial risk and adversely affecting field operations, including reservoir deliverability, well load-ups, emergency response capability, and plant integrity.
Additionally, PPL noted that the company missed its annual production targets for KGF, while production from the adjacent Chachar Gas Field has been completely halted since March 15, 2025.
In light of this, PPL has urged the DG (Gas) to advise GENCO-II to honor its gas offtake commitments. More importantly, PPL has requested approval to reallocate approximately 50 MMscfd of surplus gas from KGF to a third party to mitigate ongoing losses.
“We look forward to your support in resolving these issues and initiating the process for the sale of this surplus gas from KGF to a third party,” the Managing Director wrote.
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