CCP greenlights two mergers to boost foreign investment

• Mergers will potentially alleviate Pakistan's gas shortage.
• UAE-based company to acquire 100% stake in TEPL and TEMPL.
• Phase-1 of competition assessments have been completed by CCP.

ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved two mergers, which are poised to make way for Foreign Direct Investment (FDI) and potentially alleviate Pakistan's gas scarcity.

One of these mergers involves a United Arab Emirates-based company acquiring two entities responsible for managing a Liquefied Natural Gas (LNG) terminal, along with the import, storage, and distribution of LNG and re-gasified LNG in Pakistan.

The CCP has thoroughly reviewed and processed the merger, which entails the UAE-based Bison Energy FZCO acquiring a full 100% stake in Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited (TEMPL).

It completed the Phase-1 competition assessments, conducted in accordance with Section 11 of the Competition Act, 2010. As the proposed transactions did not raise any competition concerns, the mergers were approved.

As a result of the merger transactions, Bison Energy FZCO has acquired 100% shareholding of Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited from Diamond Gas International Japan Co Limited. The transaction will result in foreign direct investment in Pakistan and help alleviate gas shortages.

Tender launched for LNG spot cargoes

Earlier this week, Pakistan launched a fresh tender for LNG spot cargoes to meet its winter demand, after failing to secure supplies from the global market for over a year due to high prices and low availability.

The Pakistan LNG Limited (PLL), a state-owned company, said on Wednesday it was seeking bids from international suppliers for two LNG cargoes of 140,000 cubic meters each, to be delivered in December at Port Qasim in Karachi.

The delivery windows are December 7-8 and December 13-14, according to the tender document. PLL has the mandate to procure LNG on behalf of the federal government to meet the country’s gas requirements through two LNG import terminals with exclusive arrangements for public sector distribution.

The delivery from the volatile spot market has been an uphill task for Pakistan since the start of the war between Ukraine and Russia in April 2023. Previous attempts to buy LNG proved futile mainly due to the lukewarm response of sellers. The growing concern of suppliers about the country’s credit risk has been another headache for a country already plagued by chronic energy shortages.

LNG is crucial for Pakistan, where natural gas accounts for over a third of power generation and local gas reserves are insufficient to address growing electricity demand in a country of over 230 million.