UGDC awarded license for import, distribution of gas
History was made on Wednesday as for the very first time Government has allowed private sector to import and purchase gas for onward sale to consumers in any part of the country.
Government has issued licence for import and sale of LNG to Universal Gas Distribution Company (UGDC) after all the legal process that took nineteen months. Oil and Gas Regulatory Authority (Ogra) also vetted legal framework, conducted public hearings and conducted third party audit before approval and now UGDC can import LNG or buy it from any government or private entity to sell it to consumers.
Speaking to media Chairman UGDC Brig. Iftikhar Ahmed (Retd) and CEO Ghiyas Paracha said that the government decision is only one if its kind which will promote investment and improve confidence of investors which will help tame energy crisis. They said that this is firstever attempt by a sinking industry to bailout itself which will become a cases study in the business schools around the world.
Thousands of closed CNG stations in Punjab would be preferred for uninterrupted supply gas through network of Sui companies according to existing rules and regulation which will be thirty percent cheaper than petrol, they informed. Brig. Iftikhar and Ghiyas Paracha said that the move will reduce oil import bill, cut urban pollution, provide jobs to many and bailout the sinking CNG industry in which people have invested over Rs 350 billion.