Pakistan Petroleum Limited (PPL) has informed the Petroleum Division that the underutilization of gas by Genco-II (Guddu Combined Cycle Power Plant) is exposing the company to significant financial losses and suggested that the surplus gas be sold to third parties.
In a letter addressed to the Director General (Gas), the PPL Managing Director referred to earlier correspondence dated July 22, 2025, regarding “low gas offtakes by Genco-II/re-allocation of surplus gas from Kandhkot Gas Field (KGF).”
The letter highlighted the persistent issue of reduced gas consumption by GENCO-II from the Kandhkot field, repeatedly raised in past communications, according to a report in Business Recorder.
Between July 1 and August 31, 2025, Genco-II’s average gas offtake from Kandhkot stood at 115.9 MMScfd, well below the Annual Contractual Quantity (ACQ) of 130 MMScfd. Since August 20, 2025, the offtake has further declined to 100 MMScfd.
PPL warned that this prolonged underutilization is causing serious financial strain, in addition to negatively impacting reservoir management, field operations, production planning, and overall deliverability of the field.
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Given the situation, PPL has requested the Petroleum Division to schedule a meeting to discuss reallocation of the surplus Kandhkot gas to third-party buyers on an “as and when available” basis.
