OGRA lifts 12-year-old ban on new CNG station licences

ISLAMABAD – The Oil and Gas Regulatory Authority (OGRA) has lifted the ban on new licences for compressed natural gas (CNG) stations after 12 years on the condition that these fuel pumps would only sell re-gasified liquefied natural gas (RLNG) and would not seek supply of natural gas.

The Economic Coordination Committee (ECC) had directed OGRA in October 2020 to end the ban on issuance of new CNG station licences and issue RLNG-based licences. This decision makes it possible for the CNG sector to absorb the imported RLNG.

The current consumption of gas by the CNG sector is 188 mmcfd, which was up to 400 mmcfd in 2011. The sharp decline in the supply to the CNG sector is due to shut down of gas supply to CNG stations in winters which is meant to ensure supply to domestic consumers.

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