KARACHI: The Federal Minister for Energy has instructed Pakistan Petroleum Limited (PPL) to devise a strategy to enhance production from the Kandhkot gas field, which is entirely owned by PPL. This directive aims to address the reduced output from the field, which has seen an average production of 107 million cubic feet per day (mmcfd) in the fiscal year 2026, substantially down from its peak of 262 mmcfd due to decreased demand from GENCO-II.

According to AKD Securities Limited, if PPL succeeds in increasing production to its peak levels by integrating the gas into the network, either through the installation of a gas processing facility or the revival of the Guddu power plant, it could significantly impact the company's financial performance. The anticipated increase in production could lead to an annualized effect of an additional 4.3 Pakistani Rupees per share (PkR4.3/sh), representing a 10.6% increase on PPL's projected profitability of 40.5 Pakistani Rupees (PkR40.5) for the fiscal year 2027.