ISLAMABAD: In a move to solve the lack of investment in Pakistan’s energy sector, the Competition Commission of Pakistan (CCP) has given its stamp of approval to two significant mergers. These mergers are expected to usher in a new wave of Foreign Direct Investment (FDI) and promise a potential solution to Pakistan’s gas shortage.
As per details shared by CCP, a green light has been given to a UAE-based company for the acquisition of two vital entities engaged in the establishment and operation of a Liquified Natural Gas (LNG) terminal.
The CCP has granted its approval for a 100% acquisition of Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited (TEMPL), by UAE-based Bison Energy FZCO. Apart from establishing and operating the terminal, both Tabeer Energy and Tabeer Energy Marketing are involved in the import, storage, and distribution of both Liquefied Natural Gas (LNG) and Regasified Liquefied Natural Gas (RLNG) within Pakistan.
This decision marks the successful completion of Phase-1 of competition assessments, meticulously conducted in accordance with Section 11 of the Competition Act, 2010.
It is important to note here that the proposed transactions did not raise any competition concerns, leading to the green light for these mergers. Consequently, Bison Energy FZCO has now secured full shareholding of Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited. Bison bought these companies from Diamond Gas International Pte. Ltd. (DGI). The previous owner, DGI, is in turn, a wholly-owned LNG marketing arm of the larger Mitsubishi Corporation, Japan.
This development is poised to inject foreign direct investment into Pakistan’s energy sector, addressing the pressing issue of gas shortage that has been a concern for both industry and households. The CCP hopes that these mergers will attract future foreign investments and will also bolster its energy infrastructure, paving the way for a more sustainable and robust energy future.