OGRA issues LNG licenses to two companies

April 30, 2021

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The Oil & Gas Regulatory Authority (OGRA) has issued licenses to Tabeer Energy and Energas for construction of LNG Terminals.

The said licenses are valid for 15 years from the date of issuance and for construction of Liquefied Natural Gas (LNG) Terminals at Port Qasim. The terminals will be cosntructed for import, regasify, store, and supply LNG to the private customers of both companies.

The two private companies will procure LNG from abroad without any supervision from the government. They will also arrange pipeline network and connect it with gas utilities to provide access to national gas network.

However, licenses are subject to meeting the following conditions:

Prior to starting construction, both the companies should have an implementation agreement with the PQA for the construction of Floating Storage & Regasification Units (FSRU);
They need to sign gas transportation agreements (GTAs) with the Sui Southern Gas Company Ltd (SSGCL) and the Sui Northern Gas Pipelines Ltd (SNGPL) so that the national gas pipeline network can be used to supply LNG to customers.

Tabeer Energy and Energas currently doesnt have any connectivty with the local gas companies hwoever, they are re in talks with the SSGCL and the SNGPL for pipeline capacity.