LDPL seeks gas supply for 235MW power plant

By ISLAMABAD: Liberty Daharki Power Limited (LDPL) has urged the government to intervene for the immediate restoration of raw gas supplies to its 235-megawatt power plant, warning that its continued shutdown could force the national grid to rely on expensive imported fuels or resort to load-shedding. In a letter to the relevant authorities, Chairman of the Board Mujahid Pervaz Chattha sought an urgent meeting to resolve the dispute over outstanding dues and restore gas supplies, which Sui Northern Gas Pipelines Limited (SNGPL) disconnected on September 17, 2026, over non-payment. LDPL maintained that its plant was operating at number six on the Economic Merit Order (EMO) in accordance with dispatch requirements communicated by the Independent System and Market Operator (ISMO) when gas supplies were disconnected. The company said its 235-MW combined-cycle power plant operated on indigenous raw gas supplied by SNGPL from Oil and Gas Development Company Limited's (OGDCL) Qadirpur gas field and played a critical role in maintaining grid stability and providing cost-effective electricity to the national grid. According to LDPL, the continued disconnection was creating economic distortions, including disputes over capacity payment invoices with the power purchaser. Meanwhile, the company was bearing fixed operation and maintenance (O&M), insurance and administrative expenses from its own funds without reimbursement from the power purchaser or the government. The company said it could not sustain these expenses indefinitely while the plant remained shut. LDPL warned that the unavailability of its 221 MW of active generation would require the national grid to replace the lost electricity with more expensive sources, particularly power plants operating on imported re-gasified liquefied natural gas (RLNG) or high-sulphur furnace oil (HSFO). It estimated that replacing its generation could result in an additional foreign exchange outflow of approximately USD 600,000 per day, or around USD 18 million per month, owing to the higher cost of imported fuels. Alternatively, the company warned, failure to arrange replacement generation could lead to forced load-shedding, adversely affecting industrial productivity and economic growth. LDPL also disputed SNGPL's claim of outstanding dues amounting to Rs24 billion, describing the figure as highly exaggerated. It said the claim was subject to various pending adjustments and that, according to its financial records, the actual net amount payable to SNGPL stood at Rs6 billion after adjustments. The company attributed the dispute to the legacy of circular debt, which it said had been only partially resolved during negotiations with independent power producers (IPPs) in 2024. LDPL requested a meeting with the relevant authorities to discuss the outstanding dues and restoration of gas supplies, emphasising that restarting the plant was necessary to ensure the availability of relatively inexpensive electricity to the national grid. Copies of the letter were sent to the secretaries of the Power and Petroleum divisions, the managing director of SNGPL, the executive director of ISMO and the chairman of the National Electric Power Regulatory Authority (NEPRA). Separately, LDPL Chief Executive Altan Waheed Malik has declared an 'Other Force Majeure Event' following the disconnection of raw gas supplies to the power complex, saying the interruption had forced the suspension of operations despite the plant being operational and meeting dispatch requirements. In a notice to the Central Power Purchasing Agency-Guarantee (CPPA-G), the company said SNGPL disconnected gas supplies under its letter dated September 17, 2026, forcing the complex to suspend operations at 11:06 am the same day. LDPL invoked Section 13.1(c) of the Power Purchase Agreement (PPA), dated November 26, 1995, as amended, to declare the interruption an event beyond its reasonable control. The company said it was contractually obligated to supply the complex's net electrical output under the PPA, while CPPA-G was required to purchase electricity in accordance with the agreement. It added that the plant depended on raw gas supplied by SNGPL to fulfil its contractual obligations. LDPL also cited Section 2.8 of the Settlement Terms, incorporated as Annexure B to the PPA Amendment Agreement executed on October 15, 2021. According to the company, the provision stipulates that, outside a period covered by an Other Force Majeure Event, any future outage, interruption in generating capability or failure to deliver electricity resulting from non-supply of fuel by a fuel supplier would release LDPL from the obligation to use backup fuel. The provision further states that such an interruption would not be treated as a forced or partial forced outage under the PPA but would instead qualify as an Other Force Majeure Event. LDPL maintained that the suspension of gas supplies had constrained its ability to operate the complex and fulfil its contractual obligations, with the event taking effect at 11:06 am on September 17, 2026. Following the declaration, the company said it would be excused from performing its obligations under the PPA and would not be liable for any failure to perform them until SNGPL restored gas supplies. LDPL also undertook to keep CPPA-G informed of its efforts to secure the restoration of gas supplies and resume plant operations. Copyright Business Recorder, 2026