Mr. Masroor Khan, Chairman, Oil and Gas Regulatory Authority (OGRA), along with his Senior Members and executive team had a virtual interaction with representatives of Overseas Investors Chamber of Commerce and Industry (OICCI) member companies, on September 20, 2022. M Abdul Aleem, CE/Secretary General, OICCI, welcomed and thanked the chairman for taking time for this meeting with members.
Introducing OICCI, M Abdul Aleem informed that OICCI is the collective body of top 200 plus foreign investors operating in Pakistan, who are also the largest contributor to the economy of Pakistan both in terms of tax revenue contribution, as they contribute one third of Pakistan’s taxes, and foreign investment, as they had invested USD 21 billion in last 10 years in Pakistan. Overall, 33 OICCI members are engaged in the energy value chain bringing in international experience and innovation.
Mr. Aleem requested the concerned representatives to present their respective key issues already submitted to Chairman OGRA, on Aug 26, 2022, which included operational issues mainly related to LNG and LPG imports, HSE standards, under invoicing/ smuggling, periodic checks to control counterfeiting and single window operation.
During discussion participants shared the issues being faced by the businesses at present, which include like lack of clarity on Third Party Access (TPA) implementation timeline on LNG Import Terminals, inadequate policy incentives for Onshore LNG terminals, clarity on capacity available in Sui Pipeline Network, lack of HSE measures and poor quality of LPG via land route, delays in getting NOCs for retail outlets/ storage development.
The chairman respond to members’ issues and highlighted various efforts of OGRA. He informed members the LNG policy will soon be released, and few amendments are also due to be made in LNG Ordinance, which will resolve most of the concerns relating LNG, particularly the clarity on TPA. The views were also exchange regarding LPG marine imports and storage, browzers movement and deregulation. The Chairman emphasized on the need of Market liberalization for resolving gas issues. It was also recommended that for long term gas view and LNG Infrastructure, consistent policy and robust legal framework should be imposed, to attract existing and new investors. Reference to improving the HSE standards and safety measures, OGRA with collaboration with Hydrocarbon Development Institute of Pakistan (HIDP) is devising mechanism for strengthening the standard controls. HIDP lab has also been formed at the border to perform first hand testing.
Concluding the session, the Chairman requested members to show case positive outlook of the country to their international partners and counterparts to improve the perception of Pakistan. It was concluded that all stakeholders need to work together for the national interest and smooth operations in the energy sector. OICCI in the past have submitted various proposals for improving ease of doing business and facilitating business operation in the country, and will continue to assist the government, in future as well. M Abdul Aleem closed the meeting with vote of thanks and assured him full support from OICCI members in addressing the issues of Pakistan energy sector.