Thursday February 29, 2024

OGRA issues licences to two private firms for pipeline construction

July 31, 2021

ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) on Friday issued licences for construction and operation of pipeline to Energas Terminal (Pvt) Limited and Tabeer Energy (Pvt) Limited as to inject their terminals’ re-gasified gas in the national transmission system.

Earlier, almost all licenses including terminal, transmission and several other licenses have been issued to them, and it was the last leg of LNG supply chain.

These licenses have been issued under the provisions of OGRA Ordinance 2002, and Natural Gas Licensing Rules (NGLR) 2002, for carrying out the desired regulated activities.

OGRA, previously, granted licences for LNG Terminal with the capacity of 750-1000MMCFD each and sale of Re-gasified Liquefied Natural Gas (RLNG) licences. OGRA has processed these licenses on fast-track basis besides the Covid-19 which has affected working of all organizations. All licensing formalities of licences have been completed in the minimum possible time enabling companies to install their facilities and bring RLNG in the country.

Once the licenced facilities completed and made operational by Energas Terminal (Pvt) Limited and Tabeer Energy (Pvt) Limited, Pakistan will have an additional supply of 1500-2000 MMCFD of natural gas for industrial and other customers.

"This activity will bring huge investment in RLNG sector, competition in the gas market, creates new job opportunities directly and indirectly by operation of closed and new industries, thus will play a vital role in economic boost of the country," OGRA spokesman said.

OGRA has granted these licences for effective implementation of the government’s policies and its vision for competition, increase private investment and ownership in the midstream and downstream oil and gas industry of Pakistan while protecting public interest and at the same time provide effective regulation. In this effect, OGRA, in recent past, has granted licences to private sector such as LNG virtual pipeline licences to Daewo Pvt Ltd and LNG Easy Pvt Ltd, and sale of RLNG licences to Trafigura, and Shell Energy.

The Oil & Gas Regulatory Authority is determined with its vision and in consistence with Federal Government’s policy to contribute towards growth of the Energy Sector of Pakistan and ensure that the energy market is easily accessible, competitive and profitable for a prosperous Pakistan, the spokesman said.