OGRA Awaits Supply Clarification on Gas Licences

ISLAMABAD: The issuance of gas marketing licences to three private entities remains pending as the Oil and Gas Regulatory Authority (OGRA) awaits confirmation regarding their proposed sources of gas supply. Although mandatory public hearings have been conducted, final regulatory approvals have yet to be granted under the applicable licensing framework.

In response to media queries, OGRA confirmed that applications submitted by three private companies seeking licences for gas marketing and sale are currently under examination. The Authority stated that the required public hearings were duly held following submission of prescribed documentation, and the review process is ongoing in accordance with statutory requirements.

OGRA further clarified that it has sought specific verification from relevant stakeholders concerning the applicants’ declared sources of gas supply and is awaiting formal responses. The Authority has indicated that a final determination on the licence applications will be issued upon receipt and assessment of the requested clarifications.

Industry sources suggest that while certain applicants have executed memorandums of understanding (MoUs) with exploration and production (E&P) companies, several have not secured binding supply agreements. In some instances, E&P entities referenced as proposed suppliers have reportedly committed their production volumes to other purchasers, raising questions regarding supply viability.

Addressing concerns about documentation requirements, OGRA reiterated that submission of an MoU demonstrating a viable supply source constitutes the regulatory prerequisite at the application stage. When questioned whether a licence may be granted absent a finalized Gas Sale Purchase Agreement (GSPA), the Authority reaffirmed that an MoU is sufficient for initial consideration under the governing framework.

OGRA also stated that no directive or recommendation has been issued by the Petroleum Division in relation to the pending applications. The regulator categorically denied any external pressure to grant approvals in the absence of complete documentation.

The Authority’s position underscores that while proposed supply arrangements have been identified through MoUs, final licensing decisions remain contingent upon satisfactory clarification and verification of supply sources. Until such confirmation is obtained, the status of the pending applications remains unresolved.

The delay highlights the regulatory emphasis on credible and verifiable supply arrangements within Pakistan’s evolving gas marketing sector, particularly amid increasing interest from private entities seeking market participation.