ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has conducted a consultative session on Neutral Market Price under the OGRA Gas (Third Party) Access Rules for Gas Pipelines and Gas Network Codes, 2018, to encourage market liberalisation and private investment and ownership in the gas sector.
The session was held at the OGRA head office and through Zoom online application to seek meaningful suggestions and proposals from the stakeholders for a balanced decision-making on “Neutral Market Price” by the authority.
Masroor Khan, chairman OGRA and other members of the authority chaired the session.
The stakeholders in the field, the SNGPL, the SSGCL, the PLL, Pak Arab Fertilizer, Universal Gas Distribution Company, Shell Energy, Tabeer Energy, Energas, Pakistan Gas Port, K Electric, Trifigura Pakistan Ltd, Vitola Resources Pakistan, etc., have actively participated in the session and presented their point of views.
In concluding remarks, Masroor Khan, chairman OGRA appreciated the active participation of all stakeholders and assured that a judicious decision shall be taken in this regard.
“It has to be noted that some private entities are utilizing gas companies’ pipeline capacity to transmit their energy molecules from one point to another while some are also under engagement for the same kind of access arrangement. Therefore, a variety of opinion and divergent interests of all stakeholders could play a vital role for the Authority to pass a decision having unanimity and to harmonize ‘Neutral Market Price’.
The phenomena of Neutral Market Price emerges when more than one party have access to the pipeline and the lending/ borrowing of the energy molecules during a month takes place between the parties. This lending/ borrowing during the month is in fact inherent feature of access arrangement and requires financial settlement and close the transaction by the end of each month.”
The authority is a regulatory body responsible for regulating mid and downstream petroleum sector in Pakistan. The OGRA aims to develop and continuously work towards a safe, progressive and competitive Oil and Gas Industry in close coordination with all stakeholders and provide sustainable solutions, through innovation and adaptation, to foresee and overcome any challenges faced by the sector and to safeguard the interests and uphold the confidence of the nation and the consumers, in the areas of Nat Gas, Petroleum Products, Lubricants, LNG, CNG, LPG and (Oil Pipeline) Transportation of Petroleum Products.
Copyright Business Recorder, 2023
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