Inside Financial Markets

Ogra expects Rs 10.5 billion investment

Oil and Gas Development Authority (Ogra) granted licence for establishment of Oil Marketing Company (OMC) to 21 companies during the first six months of the current fiscal year. According to the Ogra’s biannually report, the authority is expecting that establishment of these companies will bring a minimum investment of Rs 10.5 billion in the next three years.

The companies which were granted licences are M/s Best Petroleum (Pvt) Limited, M/s Oil Industries Pakistan (Pvt) Limited, M/s Accel Petroleum (Pvt) Limited, M/s Euro Oil (Pvt) Limited, M/s Oleum Petroleum (Pvt) Limited, M/s Al-Noor Petroleum (Pvt) Limited, M/s Damam Petroleum (Pvt) Limited, M/s Max Fuels (Pvt) Limited, M/s Fast Oil (Pvt) Limited, M/s Hi-Tech Lubricants (Pvt) Limited, M/s Jinn Petroleum (Pvt) Limited, M/s Vital Petroleum (Pvt) Limited, M/s International Petrochemicals (Pvt) Limited, M/s Allied Petroleum (Pvt) Limited, M/s Only One Energy (Pvt) Limited, M/s Pak Gasoline Services (Pvt) Limited, M/s Shams Petroleum (Pvt) Limited, M/s Berkeley Oil & Gas Development (Pvt) Limited, M/s Taj Gasoline (Pvt) Limited, M/s My Petroleum (Pvt) Limited and M/s Terminal One (Pvt) Limited.

The OGRA granted marketing permission to five OMCs including M/s Horizon Oil Company (Pvt) Limited, M/s Petrowell (Pvt) Limited, M/s Kepler Petroleum (Pvt) Limited, M/s Outreach (Pvt) Limited and M/s Z&M Oils (Pvt) Limited to the extent of the province wherein respective companies have built their oil storages; and thereby introduced new players in the marketing arena of petroleum products.

Four licences were granted to companies, including M/s Hascol Terminals Limited, M/s Fauji Tarns Terminal Limited and M/s Hascol Petroleum Limited, for development of new oil storages/ terminals at different locations (ie Thalian, Port Qasim & Kotlajam) which will further strengthen the oil supply infrastructure.

Two lube oil blending plants and six lubricant marketing companies were also granted licences by the Authority. The OGRA carried out the UFG study to determine the reasonable UFG benchmarks for gas utility companies of Pakistan in line with best international practices through a highly reputed firm KPMG.

During the period, OGRA granted licence for supply and sale of natural gas (RLNG) to a Private Firm (Gaseous Development Co Pvt Ltd). The OGRA also approved agreements among SNGPL, SSGC, power consumers and PSO regarding import of LNG for supply to RLNG-based power projects.

The authority reviewed and processed various projects of gas companies, such as SNGPL’s 5-year project for overhauling of compressors, SSGC’s Quetta pipeline capacity enhancement project, etc.

The OGRA also issued 15 LPG and LNG licences for operations/marketing of LPG storage and filling plants. Twenty licences for construction of LPG storage and filling plants were issued; five licences for construction of LPG Auto Refuelling Stations; three licences for Storage and Refuelling of LPG; three licences for construction of LPG Air Mix LPG plants; one licence for LPG production and storage facility; six manufacturers were authorised for manufacturing of LPG equipment and one licence for construction of LNG receiving terminal at Port Qasim, Karachi, to Pakistan GasPort Consortium Limited; besides approving extension in Project Completion Timelines for LNG Integrated Project by Global Energy Infrastructure Pakistan (GEIP) and Global Energy Infrastructure Limited (GEIL) at Port Qasim, Karachi.

In CNG sector, the OGRA extended three CNG (provisional) licences into CNG marketing licenses to operate their CNG stations during the period from July to December 2016 which contributed an investment of Rs 45 million approximately. In addition, 70 existing CNG marketing licences of operational CNG stations were renewed for a period of another five years.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

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