ISLAMABAD, Nov 23: The Oil and Gas Regulatory Authority (Ogra) granted a licence to Pakistan Petroleum Limited (PPL) to sell natural gas from Kandhkot gas field at Jacobabad Sindh to Wapda's Guddu Thermal power plant.

Under the licence the PPL has been allowed to supply 115 mmcfd (million cubic feet of gas per day) to Wapda from Kandhkot field. The Ogra also issued notice to Wapda to seek a formal licence for transmission of gas from Kandhkot to its thermal power station in Guddu.

The PPL is already providing gas from Kandhkot field to Wapda's Guddu station for the last 16 years through a dedicated pipeline of Wapda. The two gas utilities - SSGCL and SNGPL - had raised objection to the licence on the ground that transmission and distribution of gas was their sole responsibility.

The two companies had contended that transmission of gas from Kandhkot field to Wapda station in Guddu should be done by them for being legal licence-holder and Wapda should enter into separate gas sale price agreement to purchase gas from them.

The objections of the two utilities were overruled by the Ogra on the ground that PPL was a deemed licensee under the relevant rules and had been providing gas to Wapda for 16 years and no physical change in arrangement would take place.

PPL was incorporated in June 1950 with the main objective of conducting exploration, development and production of Pakistan's oil and natural gas resources. It inherited all the assets and liabilities of Burma Oil Company and commenced its business on July 1, 1952. The government of Pakistan currently holds majority shares of PPL.