OGRA to promote LPG Sector by granting 33 licenses

Oil and Gas Regulatory Authority (OGRA), in annual development plan for the year 2018-19, has proposed to grant 33 licenses to promote LPG sector and ensure smooth supply of the commodity in far-flung areas especially during peak winter season.

 “Among the proposal, 25 licenses are for operation/marketing of Liquefied Petroleum Gas (LPG) storages and filling,” official sources told APP.

According to the OGRA’s annual report for the year 2016-17, the authority had issued around 21 licences to different companies pertaining to regulated gas sector since 2002, which were meant for transmission and sale of gas to various entities in different parts of the country.

The authority granted diverse licenses to different companies including Sui Northern Gas Pipelines Limited, Sui Southern Gas Company Limited, Mari Petroleum Company Limited, Pakistan Petroleum Limited, Oil and Gas Development Company Limited, Fauji Fertilizer Company Limited, Engro Chemicals Pakistan Limited, Central Power Generation Company Limited, Fatima Fertilizer Company Limited, Foundation Power Company Limited, Star Power Company Limited, Star Power Generation Limited, Engro Fertilizer Limited, ETPL, Universal Gas Distribution Company, Gaseous Distribution Company and Fauji Oil Terminal and Distribution Company.

Giving the regulatory regime overview, the report said, the regulatory functions of natural gas sector were transferred to the OGRA on March 28, 2002 with the objective to break the public sector monopoly, open the natural gas transmission and distribution to private sector and promote competition in the midstream and downstream oil and gas sector.

Since then, the authority has been performing functions like grant of licenses for regulated gas sector, formulation of rules, regulations and procedures for the conduct of licensees, determination of revenue requirement petitions of SNGPL& SSGCL, monitoring and enforcement of rules, regulations and applicable license conditions, resolution of disputes and complaints lodged by the consumers, pipeline capacity allocation, licensing of low pressure (flare) gas and for sale of re-gasified liquefied natural gas.