ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Thursday faced strong objections during a public hearing on applications for gas marketing and distribution licences, with stakeholders questioning the reliance on uncertain future gas discoveries and non-binding supply deals.
Interveners argued that many applications were based on memoranda of understanding (MoUs) with exploration companies rather than firm supply commitments, which contravenes Ogra’s licensing framework. Concerns were raised against Alhaj Group, Dewan Petroleum, Ghani Oil and Gas, and Metro Gas, whose proposed supply arrangements were either off-spec, already allocated to Sui Northern Gas Pipelines Ltd (SNGPL), or lacked transportation feasibility.
Stakeholders warned that indicative MoUs and unconnected fields could not serve as credible sources of supply. They also highlighted that certain applications did not meet minimum procurement requirements under the Gas Network Code.
Ogra Chairman Masroor Khan assured participants that the regulator would conduct thorough due diligence before taking any decision on the disputed licences.
Story by Zafar Bhutta
