Licences for RLNG-based fuel stations allowed

Published January 24, 2021
In a bid to revive the CNG sector, the government has abo­lished restrictions on fresh licences. — File photo
In a bid to revive the CNG sector, the government has abo­lished restrictions on fresh licences. — File photo

ISLAMABAD: In a bid to revive the CNG sector, the government has abo­lished restrictions on fresh licences, but all the stations are likely to be shifted to imported re-gasified natural gas from the natural gas in phases.

The Oil and Gas Regulatory Autho­rity (Ogra) has started to implement the decision of the Economic Coor­dination Committee (ECC) of the Cabi­net and the invitations for licences to establish new CNG stations have started, but with a clear warning that the raw material to be used will only be RLNG.

“The warning is attached with the invitation to apply for new CNG licenses, and the applicant has to give an undertaking that they will not claim natural gas supply even in future,” an Ogra official said, adding there have been incidents in the past when the CNG licence holders mainly in Sindh and KP approached the courts of law that getting natural gas was their right as it was produced in their province.”

The ban on the issuance of new licenses was imposed in 2008, due to a serious shortage of locally produced gas, the ECC had directed Ogra in the first week of October 2020 to issue only the RLNG-based new licences to CNG stations.

The ECC directives said that the CNG stations would neither receive indigenous gas nor can claim to get locally produced gas for conversion to CNG.

Published in Dawn, January 24th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Editorial

Ominous demands
Updated 18 May, 2024

Ominous demands

The federal government needs to boost its revenues to reduce future borrowing and pay back its existing debt.
Property leaks
18 May, 2024

Property leaks

THE leaked Dubai property data reported on by media organisations around the world earlier this week seems to have...
Heat warnings
18 May, 2024

Heat warnings

STARTING next week, the country must brace for brutal heatwaves. The NDMA warns of severe conditions with...
Dangerous law
Updated 17 May, 2024

Dangerous law

It must remember that the same law can be weaponised against it one day, just as Peca was when the PTI took power.
Uncalled for pressure
17 May, 2024

Uncalled for pressure

THE recent press conferences by Senators Faisal Vawda and Talal Chaudhry, where they demanded evidence from judges...
KP tussle
17 May, 2024

KP tussle

THE growing war of words between KP Chief Minister Ali Amin Gandapur and Governor Faisal Karim Kundi is affecting...