ISLAMABAD: Pakistan Petroleum Limited (PPL) has asked the Power Division to investigate the reasons for low gas offtake by the Genco-II, well-informed sources told Business Recorder.

According to Deputy Director (Technical) Directorate General of Gas (Petroleum Division), Salahuddin Khan, he has been directed to refer to the issue of zero/low gas offtake from Kandhkot Gas Field (KGF) and to inform that M/s Pakistan Petroleum Limited has reported that gas off-takes by Genco-II are consistently lower than submitted Annual Contract Quantity (ACQs) of 145 MMCFD and daily average off-takes from KGF remained -98.7 MMCFD (July 1-Sept 2024).

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Furthermore, since August 25, 2024, Genco-II has reduced the offtakes below 75 MMCFD and there have been instances during said period where complete gas off-takes were ceased by Genco-IL

The Directorate General (Gas) has further stated that that PPL is facing substantial exposure due to such frequent low/zero offtake conditions as it imposes adverse impact on reservoir deliverability, well load-ups, emergency handling and integrity concerns at the plant side.

The Directorate General Gas is of the view that the serious problems being faced by M/s PPL owing to less gas off-takes by Genco-II, the Power Division should ascertain reasons for low off-take and also advise the Genco-II to increase gas off-takes from Kandhkot as per duly signed agreed Gas Sales Agreement (GSA).

Copyright Business Recorder, 2024