No new CNG provisional licence issued

RECORDER REPORT

ISLAMABAD: Oil and Gas Regulatory Authority (Ogra) did not issue any new CNG provisional license across the country during the current financial year (2017-18).

In a yearly review report submitted to the Ministry of Finance, the Ogra pointed out that ban on issuance of new CNG provisional licenses was under way; therefore, the Ogra did not issue any new CNG provisional license across the country in current financial year.

The federal government imposed a ban on issuance of new provisional licenses for establishment of CNG stations in February 2008. Whereas, the GoP lifted ban on new provisional licenses for Balochistan in August 2008. At present, the ban on issuance of new CNG provisional licenses has been in force across the country since October 2011.

However, four existing CNG provisional licenses were converted into CNG marketing licenses during 2017-18 for operation of CNG stations which approximately contributed Rs60 million investment in the CNG sector. Further, 51 CNG marketing licenses of operational CNG stations were also renewed for a period of another five years from the date of expiry.

The CNG sector is fully revived with increased import of liquefied natural gas (LNG). Around 3,200 CNG stations were operating in 2012 when natural gas supply to the outlets was stopped due to scarcity of the commodity, but now around 2,300 stations have restarted their operations after the arrival of the CNG.