Port Qasim Power Plant (PQEPC) Pushes Back on Mandatory One-Year Coal Contract Limit, Warns of Fuel Security Risk
Pakistan’s Port Qasim Electric Power Company (PQEPC), which operates a 2×660 MW coal-fired power complex, has formally opposed a proposed one-year cap on coal supply agreements under new procurement guidelines issued by NEPRA. Business Recorder
In comments submitted to the Central Power Purchasing Agency-Guarantee (CPPA-G), PQEPC called the one-year limit “commercially impractical,” arguing that coal miners and vessel owners typically refuse annual contracts without minimum offtake commitments. The company warned the cap could trigger supply gaps and weaken Pakistan’s fuel security at a critical time.
PQEPC also challenged the Power Division’s benchmarking method, which flagged discount variations between tenders, ranging from US$0.20 to US$7.12 per metric tonne as potential irregularities. The company argued discount differences reflect supplier risk, market conditions, and contract specifications, not misconduct.
The plant noted that Indonesian seaborne coal exports fell 23.34% year-on-year in August 2026, making historical discount benchmarks increasingly irrelevant. It also reported spot procurement losses of approximately Rs1.62 billion incurred under the existing guidelines.
PQEPC urged the government to align oversight with its original tariff determination and PPA, and recommended designating a public-sector agency to manage coal procurement, echoing NEPRA’s own June 2026 recommendations.
Read our previous article on Pakistan’s Economy related news here.
