Provisional licences of virtual LNG pipelines granted.

ISLAMABAD -- The Oil and Gas Regulatory Authority (Ogra) on Thursday granted provisional licences of virtual liquefied natural gas (LNG) pipelines to two private companies - Daewoo Gas and LNG Easy - for supply of the fuel through bowsers to consumers outside the gas network.

The licences would be valid for one year. These would be first of its kind projects in Pakistan to facilitate the supply of natural gas mainly to off-grid consumers. Ogra said the decision was a step towards gas market liberalisation, promotion of competition in the gas market, promotion of the country's economic growth and ensure reliable supply of energy to the consumers of natural gas.

'Provisional Licence' have been issued on completion of all formalities under the the Ogra Ordinance 2002, LNG Policy 2011 and LNG Rules 2007 to allow for carrying out regulated activities in the LNG business, the regulator said.

LNG Easy Pte Ltd, to be based at Karachi Port, and Daewoo Gas Pvt Ltd, to be located at Gwadar Port, would pursue LNG virtual pipeline project for supply of gas through cryogenic bowsers. At respective ports, the two companies would import LNG cargoes, fill, transport, market and distribute the fuel under the 'Integrated LNG Project Structure' as per the LNG Policy 2011.

First-of-its-kind project to facilitate gas supply mainly to off-grid consumers

Daewoo, a registered company in Pakistan, will establish an LNG terminal at Gwadar Port and supply the fuel through cryogenic bowsers to its customers on the concept of virtual pipelines. It is a wholly-owned subsidiary of Daewoo Pakistan Express Bus Service Ltd.

For setting up of the terminal, Daewoo would use a dedicated berth for LNG at Gwadar Port and build a land-based LNG handling platform, for transferring LNG containers for distribution onwards, building warehousing capacity, and staging area for trucks. Chartered LNG vessels on a voyage charter basis will be used. The project will have the...