Ogra granted licences to nine companies to establish new OMC

Ogra resolved more than 83 percent of complaints received from all over the country against gas utilities
last year New OMC will bring investment of around Rs4.5 billion

ISLAMABAD - Oil and Gas Regulatory Authority (OGRA) had granted licences to nine companies to
establish new Oil Marketing Company (OMC), which will bring investment of around Rs. 4.5 billion on
construction of oil storage infrastructure in the next three years. “In pursuance of the power conferred under
the above Rules/ Ordinance, Nine (09) companies were granted license to establish new Oil Marketing
Company (OMC),” the OGRA stated in first year’s performance of the government. The OGRA had also
granted permission to six companies to initiate marketing of petroleum products after fulfilling their
obligation of constructing oil storage infrastructure. New entrants in marketing arena will increase the
competition which will ultimately benefit the consumers.

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Similarly, various permissions were granted to OMCs/ Companies for operations of their newly constructed
Oil Storages/ Terminals at different locations i.e. Sahiwal, Habibabad, Mehmoodkot, Machike, Daulatpur,
Port Qasim, Shikarpur, Sahiwal, Kotlajam, and Pattoki. The addition of new oil storages will strengthen
the Oil Supply infrastructure/ back-up storage system of the country. OGRA also granted a license for
construction of a new Oil Refinery (20,000 barrel/ day capacity) for a period of five year. The said refinery
will enhance the country’s refining capacity with corresponding decrease in the import demand of refined
oil products in future.

According to the report, the OGRA had resolved more than 83 percent of the complaints received from all
over the country against gas utilities SNGPL/SSGCL during last year. The OGRA had decided on 5909
complaints out of 7082 it received. As many as 635 gas complaints were resolved. Similarly, around,
Rs106.93 million reliefs were given to the consumers on the intervention of OGRA in last year.

Meanwhile, Global Energy Infrastructure Pakistan Limited (GEIP) filed a review petition before the
Authority, on 21st January 2019 to suspend Authority’s decision dated 27th December 2018 whereby the
Construction Licence of the Joint Venture of GEIP/GEIL was revoked. The Hearing of the Company’s case
was held in Lahore on 15th April 2019 and Authority on 02nd May 2019 decided to extend the timeline for
Financial Close achievement till 30th March 2020 and complete construction of LNG Terminal by 29th
March 2022.

The report stated that 23 licenses for operations / marketing of LPG storage and filling plants issued; 46
licenses for construction of LPG storage and filing plants issued; 11 licenses for construction of LPG Auto
Refueling Stations issued; 3 licenses for Storage and Refueling of LPG issued; 8 licenses for construction
of LPG Air Mix LPG plants issued and one license for LPG Storage, Operation of Air-Mix LPG Plant and
Distribution of Air-Mix LPG through Pipeline issued.

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Furthermore 2 licenses for construction of LPG Storage Terminals issued; 1 license for LPG Storage &
Handling Terminal issued; 1 license for LPG Production and Storage facility issued and 2 Manufacturers
were authorized for manufacturing of LPG equipment.

The Authority, under the OGRA Ordinance 2002 and NGRA (Licensing) Rules 2002, granted licence to
the Inter State Gas Systems Limited (ISGS) for the construction and operation of Natural Gas Pipeline
Projects, i.e. Iran-Pakistan (IP), Turkmenistan-Afghanistan-Pakistan-India (TAPI) and North South Gas
Pipeline Projects (NSGP). The said projects shall enhance the country’s gas transmission capacity as well
as contribute in mitigating the gas shortage in the country.

Under the provisions of Rule 11 of OGRA Gas (Third Party Access) Rules 2018, the “Network Code
(NWC)” was developed after taking input of various Stakeholders, i.e. general public, Sui Companies, etc.
Subsequently, the NWC was approved by OGRA on 13-12-2018 and forwarded to the Gas Companies for
implementation. The NWC was prepared with the objective of establishing a uniform contractual
framework for the third-party access arrangements in the country and the use of gas pipeline transportation
systems so as to promote the development of a competitive gas market; ensure fair, transparent and non-
discriminatory practices in all transactions concerning the use of the gas pipeline transportation systems;
prevent abuse of dominance and any anti-competitive conduct; and ensure the safe and reliable supply of
gas, and integrity of the gas pipeline transportation system.