This company is about to get a licence to buy local gas to sell to corporations privately. Not everyone is happy

EGas collects natural gas produced during oil extraction and transports it in special trucks to bridge gas demand. But what is the controversy behind their renewed licence?

Normally, Pakistan’s Oil and Gas Regulatory Authority (OGRA) renewing a company’s licence is not a particularly notable event. But it seems the licence renewal of EGas Private Ltd is becoming a bit of a bone of contention. 

Founded in 2010, EGas is a virtual pipeline company. Their business model is to collect, transport, and sell natural gas that would otherwise be wasted in the process of oil extraction. Since its inception, the company has been operating in the Kabir and Dhok Sultan gas fields, leased by the government to energy exploration and production company Pakistan Petroleum Limited (PPL), and are on the verge of having their licence (which expired after the Covid-19 pandemic) renewed. 

But the opposition to this licence renewal was recently brought up in a public hearing of OGRA, where a claim was put forward that Petroleum Division was unduly favouring EGas, pointing towards a history of payment defaults and working unlicensed based on unauthentic letter on the part of EGas that should, according to these critics, make renewing EGas’ licence a problem. 

EGas denies these claims, attributing financial discrepancies to the unprecedented disruptions caused by the COVID-19 pandemic. Despite these challenges, EGas says it remains committed to fulfilling its financial obligations and resuming normal operations. The ongoing application for a new licence is seen as a crucial step towards stabilising the company’s operations and continuing its contributions to Pakistan’s energy sector.

 

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Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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