ISLAMABAD: Pakistan allows its private sector to import Liquefied Natural Gas (LNG) as the oil and gas regulatory body has issued import licenses to at least two companies, ARY News reported.
Pakistan’s Oil and Gas Regulatory Authority (OGRA) has reportedly issued today 10-year term LNG importing licenses to at least two private sector companies.
The authorities claim private sector import will encourage competition in the market hinting that it will likely bring down prices of the utility.
Before this today, there has not been any precedence of Pakistan allowing LNG import privately.
Separately earlier last week, OGRA also approved K-Electric’s application for a license to construct and operate a gas pipeline to supply Re-gasified Liquefied Natural Gas (RLNG) for the upcoming RLNG-based 900 MW BQPS-III power plant.
According to a notification issued on Jan 6, OGRA granted a License to K-Electric Limited to undertake regulated activity related to construction and operation of 14-inch diameter x 2.4 kilometer Natural Gas Pipeline along with ancillary/connected facilities for purpose of transmission of Natural Gas/RLNG from Tie-in Point, SSGC Custody Transfer Station located at Bin Qasim to KE Bin Qasim Power Complex”
K-Electric had submitted an application for the same on 18 May 2020, so as to ensure the pipeline would be built in time for the commissioning of the first unit of BQPS-III, reads the press release issued by Karachi’s sole power company.