Oil refinery project: Chinese team visits Gwadar
In order to materialise the $4.5 billion oil refinery project in Gwadar,...
The Oil and Gas Regulatory Authority (Ogra), on 11th Nov, granted an RLNG sale licence to the Pakistan GasPort Consortium Limited (PGPCL), marking the first steps towards allowing the private sector a piece of the LNG imports and sales pie. Currently, state owned companies like Pakistan LNG Limited (PLL) and Pakistan State Oil (PSO) import LNG and gas utilities, and sell the commodity to customers. Ogra currently owes PSO over Rs300 billion due to the non-recovery of bills from domestic consumers who consumed gas during the last winter seasons. The previous governments had diverted LNG to the domestic sector in the winter seasons resulting in circular debt piling up. While the private sector has been trying to import and market LNG for years, the monopoly of state-run companies has remained a major obstacle. PGPCL has an LNG terminal with a capacity of 750 mmscfd RLNG, of which the government has allocated 600 mmcfd. The PGPCL management has been trying to utilise its own surplus capacity but has failed so far due to the involvement of the government. “The licence plus agreement between PLL and PGPCL signed on August 3, 2022 will facilitate the first ever private sector LNG import and RLNG sale, thus opening the market to competition and more efficient practices,” said an industry official.