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Sunday Jan 24 2021
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OGRA lifts years-long ban on licence for new CNG stations

The Sui Northern Gas Pipelines Limited (SNGPL) has announced that the CNG stations will be opened from 8am today onwards. Photo: File
  • Licenses to be issued for R-LNG only
  • CNG owners to take undertaking to not seek natural gas supply
  • Ban removed after 12 years


ISLAMABAD:  After 12 years, the Oil and Gas Regulatory Authority (OGRA) has lifted the ban on issuance of new licenses for CNG stations, The News reported on Sunday.

The condition, however, implies for only those running on re-gasified liquefied natural gas (RLNG). Inviting applicants, the regulatory authority has warned that they would have to take an undertaking to not seek natural gas supply. 

Read more: Gas crisis: Sindh gas stations reopen after 6 days of closure

The ban on issuance of new licenses had been imposed in 2008 but in October last year, the Economic Coordination Committee (ECC) directed the OGRA to issue RLNG-based licenses to new CNG stations. It asked the regulator that the new CNG stations would not seek indigenous gas.

On the other hand, the Sui Northern Gas Pipelines Limited (SNGPL) has announced that the CNG stations will be opened from 6:00am on Sunday [today]. 

The existing CNG sector consumption is 188 mmcfd. In 2011, it was up to 400 mmcfd, the sharp decline was due to shortage of domestic gas. 

The latest decision allows CNG sector to absorb the imported RLNG.