OGRA Allows Two Companies to Market LNG And Sell Natural Gas

The Oil and Gas Regulatory Authority (OGRA) has granted two licenses for the sale and marketing of natural gas and LNG to two private companies.

The issued licenses are for the sale of natural gas/RLNG to consumers, including industries, power plants, and licensed CNG stations, for an initial period of 10 years with effect from January 8, 2021, unless revoked earlier.

The two companies that have received licenses are Tabeer Energy Marketing (Pvt) Limited (TEMPL) and Energas Marketing (Pvt) Limited (EMPL). Both companies plan to import LNG by utilizing the idle capacity available in the LNG terminal, the newspaper reported.

While the decision to grant licenses was taken after holding public hearings on the petitions filed by these companies last year, this approval has come despite Pakistan LNG Limited’s (PLL) concerns that issuance of these licenses will affect the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) businesses.


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The companies will carry out work to operationalize the unutilized and idle capacity of the LNG terminal. According to OGRA, these companies will help mitigate the annual losses incurred by the Federal Government, in the form of capacity charges to the terminal, as well as lost revenue from underutilization.

These companies will be allowed to charge RLNG/natural gas prices per the government policy guidelines issued from time to time by the Federal Government.

The conditions for these licenses include payment of an annual fee of 0.25 percent of the annual turnover or estimated turnover of the licensee from the sale of natural gas in respect of the most recently completed financial year.

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