Staff Report
ISLAMABAD: Engro Powergen Qadirpur Limited (EPQL) has urged the federal government to expedite approval of its long-pending supplemental agreement to utilize low-BTU indigenous gas from the Badar-1 gas field—warning that a 10-month delay has already cost the country an estimated Rs787 million in lost savings and $9 million in foreign exchange.
In a letter dated June 27, 2025, addressed to Dr. Muhammad Fakhre Alam Irfan, Federal Secretary of the Power Division, EPQL CEO Adeel Qamar expressed concern over the Central Power Purchasing Agency’s (CPPA-G) failure to approve a supplemental agreement submitted in August 2024. The agreement seeks to amend EPQL’s existing Power Purchase Agreement (PPA) to include gas from Badar-1, after the National Electric Power Regulatory Authority (NEPRA) formally approved its use in February 2024.
EPQL, which operates a 225 MW power plant using permeate gas from the Qadirpur field, signed a supply agreement with Petroleum Exploration Limited (PEL) in August 2024 for 8–13 mmcfd of low-BTU gas from Badar-1. According to EPQL, all necessary infrastructure is in place and gas offtake can begin immediately upon approval.
“The transaction is structured on a Take-and-Pay basis and the gas will only be used if it ranks competitively in the Economic Dispatch Merit Order,” the letter states, underscoring the project’s cost-effectiveness and operational readiness.
The company warned that delays in approving the agreement are forcing continued reliance on costly imported fuels, particularly during the current summer demand spike. It noted that had the approval come by October 2024, EPQL could have generated 122 million additional units of power using local gas—providing significant relief to both consumers and the national exchequer.
EPQL has a strong track record of supplying low-cost electricity, having delivered approximately 18.9 billion units to the national grid since its commissioning in 2010. The use of indigenous permeate gas has resulted in an estimated Rs89 billion in consumer savings and $1.6 billion in forex savings.
While acknowledging past support from CPPA-G, PPIB, and NTDC, the company said the prolonged delay contradicts national goals of energy security and affordability. EPQL called on the Power Division to intervene and ensure urgent finalization of the supplemental agreement.
With power sector circular debt mounting and imported fuel costs soaring, the continued delay in indigenous resource utilization is increasingly being seen as a missed opportunity.
