Latest news with #Ogra
Express Tribune
a day ago
- Business
- Express Tribune
Govt scrambles for oil backup plans
Listen to article Amid escalating tensions between Iran and Israel, the Oil and Gas Regulatory Authority (Ogra) has warned oil marketing companies (OMCs) to maintain a minimum of 20 days of oil stock in accordance with licensing requirements. The prime minister has already constituted a high-level committee to explore alternative options in the wake of the Iran-Israel conflict to pre-empt any potential oil shortages in the country. Oil Marketing Companies are obligated to maintain 20-day oil reserves under their licensing terms. Ogra has previously issued directives to this effect and has now reiterated its warning, stating that companies failing to comply will face penalties and fines. In a statement, the Ogra spokesperson said, "The Oil and Gas Regulatory Authority (OGRA) has confirmed that the country currently holds sufficient stocks of petroleum products to meet existing demand". However, in light of future needs and the volatile market environment, Ogra has formally advised all OMCs to adhere strictly to the mandatory 20-day stock levels, as stipulated in their respective licences. "OGRA remains committed to monitoring the situation closely and will continue to take proactive steps to ensure national energy security," the spokesperson added. In response to the evolving geopolitical situation following Israel's recent attack on Iran and the resulting fluctuations in global oil markets, Prime Minister Shehbaz Sharif constituted a high-level committee to oversee petroleum pricing and supply dynamics. The committee is headed by the finance minister and includes senior representatives from key federal ministries, regulatory bodies and energy sector experts. It has already held its first meeting and is scheduled to reconvene early next week to assess possible supply routes and contingency measures. During its initial meeting, the committee explored alternative oil supply routes from Saudi Arabia and the United Arab Emirates (UAE), including pipeline transport, in case the Strait of Hormuz – a critical global oil supply route – is blocked due to escalating hostilities. The committee was informed that Saudi Arabia possesses an existing pipeline network, including the East-West Pipeline (Petroline), which transports crude from its eastern province to the Red Sea port of Yanbu. Similarly, the UAE's Abu Dhabi Crude Oil Pipeline (Adcop) to Fujairah is designed to bypass the Strait of Hormuz, ensuring uninterrupted exports. The Petroleum Division, in a submitted report, stated that the Strait of Hormuz handles 20% of global crude oil exports. Any closure of this route by Iran could severely impact global supply chains, including Pakistan's. Under a worst-case scenario, global oil prices could surge to $100$150 per barrel. While there is currently no immediate threat of a spike in prices, Pakistan is in discussions with international oil suppliers to ensure continuity of supply. At present, the country has access to up to one million tons of furnace oil storage capacity through abandoned power plants. Experts have recommended that the government utilise these facilities to store strategic oil reserves. It has also been proposed that the government purchase these storages, as the power sector plans to dispose of them as scrap.
Business Recorder
a day ago
- Business
- Business Recorder
Sufficient POL stocks available: Ogra
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has confirmed that the country currently holds sufficient stocks of petroleum products to meet existing demand. However, in view of anticipated future requirements and the prevailing market situation, OGRA has formally advised all Oil Marketing Companies (OMCs) to ensure the maintenance of their mandatory 20-day stock levels, in line with the conditions stipulated in their respective licences. Ogra launches e-licensing system for oil & gas sector The Ogra remains committed to monitoring the situation closely and will continue to take proactive steps to ensure national energy security. Copyright Business Recorder, 2025
Business Recorder
14-06-2025
- Business
- Business Recorder
SNGPL, SSGC: Weighted average price of imported RLNG cut slightly
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday notified a slight reduction in the weighted average price of imported Re-gasified Liquefied Natural Gas (RLNG) for both gas companies – the Sui Northern Gas Pipeline Limited (SNGPL) and the Sui Southern Gas Company (SSGC) with effect from June 1, in a monthly review. The Ogra states, 'The slight decrease in RLNG prices is due to slight decrease in Terminal charges'. Terminal charges have gone down to $0.4704 per mmbtu from $0.4843 in previous month. The price has been worked out base at ten RLNG cargoes arrived under long term contracts. The oil and gas regulator set $11.0154 per mmbtu RLNG price for transmission and $11.7816 per mmbtu for distribution for SNGPL consumers which is slightly low on month-to-month basis (May). In previous month, the transmission cost was $11.0257 per mmbtu and $11.7925 per mmbtu for distribution for SNGPL. A 0.09 percent or $0.0103 per mmbtu reduction has been recorded. Whereas, the regulator set $9.7284 per mmbtu for RLNG price for transmission and $10.8650 per mmbtu for distribution for SSGC consumers which is slightly low on month-to-month basis (May). In the previous month, the transmission cost was $9.7367 per mmbtu and $10.8742 per mmbtu for distribution for SSGC. A 0.08 percent or $0.0092 per mmbtu reduction has been recorded. Copyright Business Recorder, 2025
Business Recorder
10-06-2025
- Business
- Business Recorder
July-March of FY2025: Significant cut in crude oil, gas extraction recorded
ISLAMABAD: A significant decrease in domestic crude oil and natural gas extraction has been recorded during the first nine months (July-March) of the current fiscal year 2025, according to the recently released Pakistan Economic Survey 2024-25. The crude oil extraction dropped by 14.8 percent, while natural gas production declined by 6.8 percent on year to year basis. 'With no significant new discoveries, the country relied heavily on Re-gasified LNG (RLNG), imports to meet domestic demand, especially for the power and industrial sectors,' the survey stated. From July to March in current fiscal, the average natural gas consumption stood at approximately 3,143 million cubic feet per day (mmcfd). Around 798 mmcfd of this volume was RLNG, indicating a substantial portion of the supply is imported. Whereas, during the same period in fiscal year 2024, total gas consumption was slightly higher at 3,207 MMCFD, with RLNG accounting for a smaller share at 695 MMCFD. Petroleum product imports fell 6.3 percent to USD 5.0 billion (USD 5.3 billion last year), reflecting demand management. LNG imports dropped 10.3 percent to USD 2.9 billion (USD 3.3 billion last year) due to higher prices. The power sector has remained the primary consumer of RLNG during the first nine months of the current fiscal year, using of 496 mmcfd, an increase from the 433 mmcfd consumed in the same period last fiscal year. Domestic consumption of RLNG remained minimal at just 1 mmcfd. The fertilizer sector significantly increased its RLNG usage, from 43 mmcfd in the last fiscal year to 74 mmcfd in the current fiscal year To date, two LNG terminals are operational with the Ogra, licenses granted in 2016 and 2018 to EngroElengy Terminal Limited (EETL) and Pakistan GasPort Consortium Limited (PGPCL), respectively. For the development of new LNG terminals, the Ogra has granted construction licenses to three private sector companies, Energas Terminal Private Limited (ETPL), Tabeer Energy (Private) Limited (TEPL) and Global Energy Infrastructure Pakistan Limited (GEIP). Crude oil extraction has declined by 6.8 percent from 866.30 barrel in fiscal year 2024 to 807.30 barrel in first nine months of 2024-25. Crude oil imports, however, registered a slight decline. Globally, crude oil fell by 4 percent from USD 90.1 per barrel in April 2024 to USD 67.7 in April 2025. Crude oil registered an 8.8 percent increase in volume, while the value remained almost flat at USD 4.11 billion, owing to softening crude prices in the global market. Copyright Business Recorder, 2025
Express Tribune
02-06-2025
- Business
- Express Tribune
OMCs failing to keep 20-day stock to face penalties
The Oil and Gas Regulatory Authority (Ogra) has decided to impose penalties and in some cases suspend licences of oil marketing companies (OMCs) over failure to maintain 20-day oil stocks and lift the required petroleum products from refineries. The refineries will also face Ogra's action if they produce less-than-committed volumes for three consecutive months. In a letter to the leading OMCs, Ogra said it has observed that numerous OMCs were not adhering to their commitments made during the product review meeting (PRM) regarding the lifting of stocks from local refineries. "This failure to comply with the PRM directives is not only adversely impacting Ogra's oil supply chain management but is also damaging energy security and causing substantial revenue losses due to imports, which is tantamount to violation of the authority's directions," the regulator said, adding that after careful consideration and thorough deliberation, it made the decision that the OMCs which fail to lift local products vis-a-vis their commitment/ allocation in the PRM from refineries, fail to maintain 20 days of stock and the refineries which produce less-than-committed products for three consecutive months, would be placed before the authority for consideration of suspension of their marketing licence. The regulatory authority, during its meeting held on May 29, 2025, reviewed serious contraventions related to stock maintenance and product procurement. After deliberation, it approved immediate imposition of penalties by the department concerned under Rule 69 of the Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules, 2016. As per Rule 37, the OMCs that failed to maintain the mandatory 20-day stock cover in March 2025 shall be penalised based on the shortfall in the average stock days. The OMCs which maintained less than five days of stocks will face a penalty of Rs10 million, for five or less than 10 days of stocks, the penalty will be Rs7.5 million, for 10 or less than 15 days of stocks, the penalty will be Rs5 million and for 15 or less than 20 days of stocks, the penalty will be Rs1 million. The regulator will also slap penalties on the OMCs that lifted insufficient products from the refineries. It will impose a penalty on the refineries that failed to supply allocated products to the OMCs and even those refineries will face action that produced less than the quantity committed in the PRM during March 2025. The OMCs which had more than 10% and less than 25% shortfall in lifting petroleum products from the refineries will face a Rs1 million penalty, in case of more than 25% and less than 50% shortfall, the penalty will be Rs5 million, in case of more than 50% shortfall, the penalty will be Rs7.5 million and those which had a shortfall of more than 75% in supplies from the refineries will face a Rs10 million penalty. For April 2025, the regulator directed the department concerned to issue show-cause notices to the relevant OMCs and refineries by May 30, 2025. A response period of seven working days from the date of issuance was granted. The authority further advised that show-cause notices for May 2025 be issued by June 20, 2025. Future enforcement measures Ogra has decided that any OMC failing to lift local products in relation to its PRM commitment or maintain a 20-day stock cover, and any refinery under-producing against its commitment for three consecutive months, will be subject to the possible suspension of their marketing licence. The enforcement department has been instructed to issue this directive to all the entities concerned. The authority has told the enforcement department (legal) to finalise the draft of "Petroleum Products Review Meeting Regulations, 2025" in consultation with the relevant departments. The draft will be submitted to the stakeholders for feedback, who will be allowed a period of seven working days to provide their comments.
