KARACHI – Engro Powergen Qadirpur Limited (PSX: EPQL) has crossed a significant regulatory hurdle, receiving a No Objection Certificate (NOC) for a crucial supplemental agreement to its power purchase agreement, a move that secures a new, long-term fuel source for its operations.
In a mandatory disclosure to the Pakistan Stock Exchange on Thursday, the company announced that the Private Power and Infrastructure Board (PPIB) has formally approved the Supplemental Agreement with the Central Power Purchasing Agency (CPPA-G). This agreement, initially executed on August 19, 2025, officially permits the company to utilize low BTU gas from the Badar gas field as an additional fuel.
The approval enables the integration of 8 to 13 million standard cubic feet per day (mmscfd) of gas, supplied by Petroleum Exploration Limited (PEL Gas), into the power generation process at Engro Powergen Qadirpur’s plant.
“This is a materially positive development for EPQL,” said a senior energy sector analyst who spoke on condition of anonymity. “Securing a dedicated domestic gas supply, even of low calorific value, diversifies the plant’s fuel mix away from more expensive imported alternatives. This could lead to improved operational reliability and potentially better margins, depending on the final gas pricing.”
The inclusion of a local gas source is seen as a strategic step to mitigate risks associated with fuel supply disruptions and price volatility in the international market. The Badar gas field, operated by PEL, will now become a key supplier for the 217-megawatt power plant located in Qadirpur.
The company stated that it will continue to inform the exchange of any further material developments on the matter. The news was met with investor interest, with market watchers anticipating a positive impact on the company’s long-term financial sustainability.
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