The Oil and Gas Regulatory Authority (Ogra) has awarded a 10-year license for the sale of natural gas and regasified liquefied natural gas (RLNG) to SSGC-Alternate Energy (Pvt) Ltd, a subsidiary of Sui Southern Gas Company Ltd (SSGCL). The subsidiary, known as SSGC-AE, was established two years ago with the primary objective of entering the renewable energy sector and expanding beyond its regulated business of natural gas and RLNG.
SSGC-AE’s core mission includes implementing alternative energy projects, such as renewable and eco-friendly fuel ventures, thermal energy-based electricity generation, and forward-looking initiatives like coal-to-gas (C2L) conversion with carbon capture and storage capabilities, as well as green hydrogen production. The company has recently expressed its commitment to promoting Green Molecules and engaging in the production of biogas and biomethane derived from non-food organic sources.
Ogra’s license conditions stipulate that SSGC-AE cannot purchase gas volumes allocated to SSGC as the government-nominated buyer, and vice versa. Furthermore, any gas volumes purchased by SSGC cannot be sold to SSGC-AE and vice versa, ensuring transparency and fair competition.
SSGC welcomed the grant of the license, emphasizing its dedication to expanding its energy portfolio and ensuring a reliable supply of natural gas and RLNG to meet the growing energy demands in the country. SSGC, a publicly listed company under the Ministry of Energy (Petroleum Division), is responsible for the transmission and distribution of natural gas in the southern region of Pakistan, covering the provinces of Sindh and Balochistan.
In another move to accelerate oil and gas exploration activities, the government awarded eight new exploration and production (E&P) blocks on Wednesday. Local and international companies, including Oil & Gas Development Company Ltd (OGDCL), Pakistan Oilfields Ltd (POL), United Energy Pakistan Ltd (UEP), and a Joint Venture of Pakistan Petroleum Limited (PPL), participated in the exploration licenses. This initiative is expected to bring in over $33.3 million in investment over three years, contributing to meeting the country’s growing energy needs.
