The Oil and Gas Regulatory Authority (OGRA) has declared that it is open to receiving new applications from parties that wish to setup re-gasified liquefied natural gas (R-LNG) based CNG stations.
Reports suggest that the new applications have been permitted by OGRA after a 12-year ban. However, the authority has stipulated that the new filling stations will only be permitted to run on R-LNG-based CNG.
OGRA’s provision also entails that the new applicants will have to sign an undertaking that they will not ask to be supplied natural gas.
Although the ban on the issuance of new licenses to the owners of CNGs had been enacted in 2008, the Economic Coordination Committee (ECC) had suggested in October 2020 that OGRA should consider following the aforementioned condition whereby new applicants would be restricted to abiding by it.
The petroleum division had sought the government’s approval three weeks ago to use flare gas as an alternate fuel in consideration of the acute shortage of natural gas across the country. However, OGRA had refused it, claiming that the inconsistent quality of the gas along with the technological and legal barriers involved would be detrimental to public safety.
The authority explained in a letter sent to the petroleum division that the inconsistent quality of the gas would damage CNG equipment at CNG stations and would compromise the integrity of the CNG systems installed in cars, and would endanger lives and property.