January 12, 2021: The Oil and Gas Regulatory Authority (OGRA) Tuesday granted licences to two private sector companies, Tabeer and Energas, for carrying out regulated activity of sale of natural gas and Liquefied Natural Gas (LNG) for an initial period of 10 years.
According to separate notifications issued by the authority, the licences were subject to fulfillment of execution of GTAs (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.
“In case, the licensees could not comply with the covenant, and failed to start operation within one year of issuance of the licences, the licences granted shall stand canceled/revoked forthwith,” it added.
Tabeer Energy Marketing (Pvt.) Limited (TEML), a subsidiary of Mitsubishi Corporation, had applied for the licence on April 17, 2020 and Energas Marketing (Pvt.) Limited (EMPL), a sister organization of Energas Terminal Private Limited, on April 16, 2020.
The authority has granted the permits after holding public hearings and fulfilling all legal and codal formalities.
This initiative is part of the Pakistan Tehreek-i-Insaf (PTI) government’s ease-of-doing business plan, introduced to encourage maximum participation of private sector players in the energy field and create a healthy environment of competition among public and private sector companies.
