OGRA lifts ban on issuance of new licences for CNG stations

ISLAMABAD: After 12 long years, the Oil and Gas Regulatory Authority (OGRA) has lifted the ban on the issuance of new licences for the new compressed natural gas (CNG) filling stations in the country. 

According to the OGRA, new licences would be awarded to run CNG stations on the Regasified Liquefied Natural Gas (RLNG). The body while inviting the applications from the interested persons has published advertisement in the newspapers.

In January 2008, the then caretaker prime minister, Mohammad mian Soomro, while receiving a presentation on a review of power and gas situation, had directed that “new CNG licences in the pipeline should be held up and CNG connections should not be given except to those who have already imported CNG machines”.

Later, in April 2011, Prime Minister Yousaf Raza Gillani imposed a moratorium on provision of new industrial and commercial gas connections across the country with immediate effect for a period of six months.

On the expiry of the said moratorium, Mr Gillani approved certain proposals with respect to the CNG sector in September 2011 under which Ogra issued marketing licences to the prospective applicants.

In January 2013 PM Raja Pervaiz Ashraf took up a summary submitted by the erstwhile Ministry of Petroleum and Natural Resources and again put a ban on issuance of new provisional licences for setting up of CNG stations.