Three gas marketing licences in limbo as OGRA awaits confirmation of supply sources

ISLAMABAD: The fate of three private firms seeking gas marketing licences remains uncertain as the Oil and Gas Regulatory Authority (OGRA) awaits confirmation of their proposed sources of supply, delaying final approvals despite the completion of mandatory public hearings.

In response to queries from Profit, the regulator confirmed that applications from three private companies for gas marketing and sale licences are under review. OGRA said public hearings had been conducted in accordance with regulatory requirements after submission of the necessary documents, and the review process is continuing under the applicable framework.

OGRA stated that it had sought specific clarification from relevant stakeholders regarding the applicants’ proposed sources of gas supply and is still awaiting a response. It added that a decision on the licence applications will be issued once the required clarification is received.

Industry sources said that while several private firms have submitted memorandums of understanding (MoUs), many have yet to secure confirmed supply agreements. In some cases, the exploration and production (E&P) companies cited as suppliers have already committed their gas to other buyers.

On supply arrangements, OGRA clarified that applicants have submitted MoUs with E&P firms indicating proposed sources of supply. Under the regulatory framework, submission of an MoU with a viable supply source is required at the time of applying for a marketing or sale licence.

When asked whether a licence could be granted without a finalised Gas Sale Purchase Agreement (GSPA), OGRA reiterated that an MoU with a viable supply source is the requirement at the application stage.

The regulator further stated that the Petroleum Division has not issued any direction or recommendation regarding the pending cases. OGRA also denied any pressure to grant licences despite incomplete documentation.

OGRA’s position indicates that although the applicants have presented MoUs identifying proposed supply sources, the authority’s final decision remains pending until the requested clarifications are received and reviewed. Until then, the issuance of gas marketing licences to these firms remains undecided.

The delay highlights the importance of verified supply arrangements in the gas marketing sector and reflects the regulator’s approach amid a rise in applications from private companies seeking entry into the market.