Gas Sector Opened to Private Companies: Monopoly of Sui Gas Companies Ended

Islamabad:The monopoly of Sui gas companies in the gas purchase and sale sector has come to an end, and the gas sector has officially been opened for private participation.

The Petroleum Division has issued a framework announcement for the implementation of this change, which allows third-party (private sector) companies to sell gas. The Oil and Gas Regulatory Authority (OGRA) has also validated the approval, permitting private companies to sell up to 100 million cubic feet of gas annually.

Under this policy, the annual review of the revised policy for exploration and production companies will be conducted to pave the way for an investment of $5 billion in the sector.

The Council of Common Interests (CCI) has already approved the amended 2012 policy on January 26, 2024, which grants exploration and production companies the right to sell 35% of their pipeline capacity to third parties who hold an OGRA license.

This move will initiate a competitive process, and no approval from any government agency will be required, as long as the price offered by a private sector company is not lower than the wellhead price. The decision announced will apply to all existing licensed companies under the 1998, 2001, 2009, and 2013 policies, who have not been allocated areas yet. These will be allocated following the approval of the CCI.