ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) will hold hearings on Thursday (September 18) to decide on applications from several private companies seeking licenses to transport and market natural gas through the existing transmission networks of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC).
The applicant companies claim they intend to purchase gas from producers and market it to a range of consumers across Pakistan. Among the proposals, some firms have sought licenses to sell gas from the Kot Pulak field operated by Alhaj and from Dewan’s Salsabil field.
Sources in the Petroleum Division have stated that gas from both fields (Kot Pulak and Salsabil) has already been allocated, which raises questions about how applicants could market it to their respective consumers. Additionally, some applicants have failed to provide mandatory documentation, including Sales Purchase Agreements (SPAs) or Memoranda of Understanding (MoUs) with producers — a legal requirement for obtaining a transmission and marketing license.
“Applicants must demonstrate binding agreements with producers for unallocated gas that is genuinely available for sale,” one source explained. “Without these documents, the applications appear incomplete.”
The sources also pointed out that the gas fields of Kot Pulak and Salsabil are not yet ready for immediate supply. These fields are not connected to the sui companies’ networks, and equipment installation is still underway. This means the gas is not physically available in the system, even if commercial arrangements were in place.
Sources argue that OGRA may have scheduled hearings without fully scrutinizing whether the applicants meet the basic criteria. “Licensing companies to market gas that is already allocated or not yet deliverable risks undermining regulatory credibility,” a source warned.
When contacted, an OGRA spokesman confirmed that the hearings would proceed as planned. “The Oil and Gas Regulatory Authority (OGRA) will be conducting hearings of the cases tomorrow. The Authority will announce its decision after carrying out due diligence,” the spokesman said.
It is worth noting that the OGRA spokesman did not respond to questions regarding whether some applicant companies have submitted valid Sales Purchase Agreements (SPA) and Memorandums of Understanding (MoU) from producers. Questions also remain about the basis on which OGRA is considering granting natural gas sale licenses to these companies, especially when the gas from the concerned fields has already been allocated and is not available in the market.
These applications come amid growing calls for private sector participation in Pakistan’s gas market, as the country grapples with declining domestic production and increased dependence on imported LNG. Proponents argue that allowing private marketing could broaden supply options and improve efficiency, while skeptics warn it could complicate allocation and pricing if not carefully regulated.
OGRA’s ruling following the September 18 hearings will set a precedent for how private companies engage in the gas marketing business and whether they can legitimately market the output of producers such as Alhaj and Dewan under current allocation rules.
