SSGC’s subsidiary gets 10-year sale licence for gas, RLNG

Published January 25, 2024
Under the licence condition, SSGC-AE shall not be allowed to buy any gas purchased by SSGC.—Dawn/file
Under the licence condition, SSGC-AE shall not be allowed to buy any gas purchased by SSGC.—Dawn/file

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Wednesday granted a 10-year licence for the sale of natural gas and regasified liquefied natural gas (RLNG) to a subsidiary of Sui Southern Gas Company Ltd (SSGCL) called SSGC-Alternate Energy (Pvt) Ltd.

The SSGC established the subsidiary — SSGC-AE — about two years ago with the main objective of renewable energy business to diversify its existing regulated business of natural gas and RLNG to customers and compete with private entities which have yet not been allowed to practically operate in natural gas and RLNG business.

According to stated objectives, the SSGC-AE’s core mission was the implementation of “alternative energy projects, including but not limited to renewable and eco-friendly fuel ventures such as biogas and biomethane, thermal energy-based electricity generation and forward-looking initiatives like coal-to-gas (C2L) conversion with carbon capture and storage capabilities, as well as green hydrogen production”.

It had recently announced to proactively spearhead the promotion of Green Molecules and to engage in the production of biogas and biomethane. “This renewable gas can be derived from non-food organic sources, including cow dung, municipal waste, rice husk, energy crops and similar substrates. This strategic initiative is geared towards establishing a sustainable and eco-friendly energy ecosystem”, it had said recently.

Govt awards eight blocks to boost E&P activities

Therefore, Ogra has made it clear in its licence conditions that SSGC-AE “shall ensure that any gas volumes allocated to SSGC as Government-nominated buyer under the applicable Petroleum Policy/Rules shall not be purchased by SSGC-AE as third-party buyer and vice versa. Moreover, any gas volumes purchased by SSGC shall not be sold to SSGC-AE and vice versa”.

The SSGCL said that the grant of licence to SSGC-AE for the sale of natural gas and RLNG was a significant development, showing its commitment to expanding its energy portfolio and ensuring a reliable supply of natural gas and RLNG to meet the growing energy demands in the country.

SSGC is a publicly listed company that operates under the administrative control of the Ministry of Energy (Petroleum Division) and is responsible for the transmission and distribution of natural gas in the southern region of Pakistan, covering the provinces of Sindh and Balochistan. It claims 7pc system losses in Sindh and 50pc in Balochistan.

APP adds: The government on Wednesday awarded eight new exploration and production (E&P) blocks to accelerate oil and gas exploration activities in potential areas and meet the ever-growing needs of the country.

With the award of exploration licences to local and international companies, there would be over $33.3 million in investment over three years.

According to a press release, the Ministry of Petroleum executed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) over block no. Kotra East (2867-8), Murradi (2767-7), Sehwan (2667-19) and Zindan-II (3271-9) with Oil & Gas Development Company Ltd (OGDCL), Multanai (3168-3) with Pakistan Oilfields Ltd (POL), Sawan South (2668-26) with United Energy Pakistan Ltd (UEP) a Chinese Exploration & Production Company, Gambat-II (2668-25) with Joint Venture of Pakistan Petroleum Limited (Operator) and OGDCL and Saruna West (2666-1) with Joint Venture of POL (Operator), PPL and OGDCL.

Published in Dawn, January 25th, 2024

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