PPL signs Gas Sales Agreement for Kandhkot

ISLAMABAD: Pakistan Petroleum Limited (PPL) executed a Gas Sales Agreement with Central Power Generation Company Limited (CPGCL), also known as GENCO II, for sale of up to 200 MMscfd gas with 72.5 percent ‘Take or Pay’ commitment, from its solely owned and operated Kandhkot Gas Field (KGF) to GENCO II’s Guddu Thermal Power Station (GTPS), District Kashmore, Sindh. PPL Managing Director and Chief Executive Officer Syed Wamiq Bokhari and CPGCL Chief Executive Officer Muhammad Ayub Ansari signed the agreement on October 23 in Islamabad. 

This agreement formalises the increased gas supply from KGF, which PPL committed to the government of Pakistan in September 2016. In addition to gas sales to GENCO II, PPL is also selling up to 50 MMscfd gas to Sui Northern Gas Pipelines Limited, which is also supplied to GTPS.

To fulfil its commitment to the government of Pakistan, PPL embarked on an aggressive drilling and development programme to achieve the extraordinary feat of delivering the near-impossible target of scaling up gas sales from around 140 MMscfd in financial year 2015-16 to 230 MMscfd by May 2017.

To this end, six development wells were drilled in record 9 months with multi-rig operation, successfully finding sweet spots in a mature field and enhancing field capacity by 90 MMscfd gas, which is being delivered to GTPS. Besides, two compressor units were added and production facilities were debottlenecked. Looking ahead, three development wells are planned to be drilled this year to maintain the production plateau.

Earlier, Prime Minister of Pakistan Shahid Khaqan Abbasi formally marked the exceptional production enhancement from KGF during a well-attended event hosted by PPL on October 7, 2017. PM Abbasi was highly appreciative of the remarkable endeavour by PPL for increasing gas production ahead of schedule to contribute towards meeting the demand for power generation, resulting in foreign exchange savings of USD 250-300 million on gas import.