OGRA invites fresh applications for new RLNG-based CNG stations

Jan 25, 2021: Oil and Gas Regulatory Authority (OGRA) has sought fresh applications from the interested parties for the establishment of new Re-gasified Liquefied Natural Gas (RLNG)-based CNG stations.

“All applicants who have not been granted any license so far are advised to submit fresh requests for the license to operate on RLNG along with requisite/updated documents if required,” the authority said in an advertisement published in national dailies titled “To Whom It May Concern.” OGRA, in the public ad, informed that the Economic Coordination Committee of the Cabinet had approved to grant new CNG licenses on RLNG ‘only’ and clarified “the license cannot claim for its conversion to indigenous gas.” Central Leader of All Pakistan Compressed Natural Gas Association (APCNGA) Ghiyas Abdullah Paracha has welcomed the government decision with regard to setting up the new CNG outlets in the country.

In a press statement, he said OGRA had lifted the ban from the establishment of new CNG stations after a period of 12 years, expressing confidence that the CNG industry would flourish in the coming days.

He asked the interested parties to apply for the RLNG-run CNG outlets and hoped that the CNG industry would get uninterrupted supply in the future as the government had allowed the private sector to import and utilize their own LNG.

OGRA has recently granted the first-ever marketing licenses to two companies for undertaking regulated activities with regard to the sale of natural gas and LNG, under the ease-of-doing-business plan introduced by the Pakistan Tehreek-i-Insaf (PTI) government.

Besides it issued two ‘provisional licenses’ of supplying LNG through cryogenic bowzers to consumers especially where the regular gas transmission network does not exist.

The authority allowed Tabeer and Energas companies for the regulated activity of the sale of natural gas and LNG for an initial period of 10 years, subject to fulfillment of execution of Gas Transportation Agreements with Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL), service agreements for metering/billing to the consumers and safety issues, LNG supply agreements, besides signing of contracts with LNG terminal operators.

Whereas, the ‘provisional licenses’ were issued to the LNG Easy (Private) Limited and Daewoo Gas Private Limited’ companies to pursue the LNG virtual pipeline project for supply of the commodity through cryogenic bowzers.

The provisional licenses would enable the virtual pipeline companies to complete all formalities under rules and apply for carrying out LNG regulated activities in the country.

The new licenses would help encourage healthy competition in the gas market, support the national economic growth and ensure a reliable supply of energy to the consumers of natural gas throughout a year across the country.

APP