OGRA, Petroleum Division in row over new CNG licenses

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ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) and the Petroleum Division are entangled in a serious tiff over the issuance of new provisional licenses to private and commercial entities across the country for setting up CNG stations, reported Business Recorder.

On October 29, 2019, the federal government lifted the moratorium on new CNG connections but it is yet to come with a policy guideline for issuance of new licenses for setting up CNG stations. A letter of Petroleum Division to managing director Sui Northern Gas Pipelines Limited (SNGPL) and chairperson OGRA stated,” The CNG consumers may also apply for new connections on RLNG supply.”

In line with the federal cabinet’s decision on April 12, 2017, Petroleum Division has lifted ban on new RLNG connection for industrial, commercial and captive consumers etc. The CNG consumers may also apply for new connections on RLNG supply, claimed the report.

Sources in Petroleum Division quoted by the publication said that OGRA has sought the federal government’s CNG policy pertaining to issuance of fresh CNG licenses. On July 9, 2019, the oil and gas regulator argued before the Petroleum Division that the federal government should provide a clear guideline on issuance of licenses to new CNG stations.

Petroleum Division, however, opined that it does not need any guideline on issuance of CNG licenses and OGRA as a regulator of oil and gas sector may take decision in this respect after keeping in view the gas situation in the country.

On August 5, 2019, the Oil & Gas Regulatory Authority imposed a ban on the use of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) by all public service vehicles (PSVs), including school vans, to ensure the safety of public life and property.

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