ISLAMABAD: The controversy surrounding the allocation of gas from the Spinwam field continues, with holders of Oil and Gas Regulatory Authority (OGRA) gas marketing licences once again raising concerns over the bidding framework, arguing that it contradicts the decision of the Council of Common Interests (CCI).
During a recent consultation session organized by Mari Energies, industry participants questioned the eligibility criteria for bidders, particularly the inclusion of entities that do not possess an OGRA licence at the time of bidding. While the bidding deadline has been extended to July 2, 2026, stakeholders maintain that the fundamental issue remains unresolved.
Licensed gas marketing companies argue that allowing unlicensed entities to participate first and obtain licences later undermines the purpose of a regulated third-party gas marketing regime. According to them, obtaining an OGRA licence is not a post-award formality but a prerequisite that demonstrates technical capability, financial strength, regulatory compliance, and consumer protection commitments.
Concerns intensified after the June 17 consultative session, where Mari Energies reportedly reiterated its position that non-licensed entities could participate in the bidding process and secure the required licence after winning the bid. Stakeholders warn that such an approach could create regulatory uncertainty and potentially trigger legal disputes.
Industry representatives have urged that the bidding framework be revised in accordance with the CCI decision, insisting that participation should be limited to companies already holding valid OGRA licences or those that obtain licences before being declared eligible bidders.
They stress that their objection is not against competition but in favour of a transparent and legally compliant process that ensures a level playing field for all participants.
Stakeholders have called on OGRA, the Directorate General of Petroleum Concessions (DGPC), and the federal government to urgently review the matter and ensure the bidding process aligns with the intent of the CCI decision.
Several industry players, including Pakistan LNG and Natural Gas Supply Company, Ghani Glass, Wellhead, and Universal Gas Distribution Company (UGDC), have argued that the CCI decision clearly stipulates that gas sales can only be made to licensed entities. They warn that allowing unlicensed bidders to participate could result in significant delays in the commercialization and monetization of gas resources.
Mari Energies, however, has formally clarified that after extensive consultations with its legal advisers, it cannot make an OGRA licence a pre-bid requirement. The company noted that it has already communicated this position to OGRA through a public letter and believes any change in stance could expose it to litigation.
The company further stated that it would actively support the successful bidder in obtaining the necessary OGRA licence after the bidding process. Mari also expressed its willingness to bear the commercial risk associated with potential licensing delays, noting that the entire 50 million cubic feet per day (MMCFD) output, including the 17.5 MMCFD earmarked under the current allocation process, is presently being supplied to SNGPL on an interim basis.
