Stakeholders holding Oil and Gas Regulatory Authority (OGRA) gas marketing licences have again questioned the bidding framework for Spinwam gas allocation, saying the process is inconsistent with the Council of Common Interests' (CCI) decision. Mari Energies recently held a consultation session where bidders raised questions over the bidding process.
Core Issue: Licence Eligibility at Time of Bidding
According to industry representatives, the extension of the bidding deadline to July 2, 2026, and the consultative session held on June 17 provided an opportunity to address concerns. However, they contend that the core issue remains unresolved – the eligibility of entities that do not possess an OGRA licence at the time of bidding. Licence holders maintain that permitting non-licensed entities to participate first and seek licences later defeats the purpose of a regulated third-party gas marketing framework.
Licensing as Fundamental Criterion
Stakeholders contend that a bidder cannot be considered eligible without first satisfying licensing requirements. In their view, licensing is not a post-award formality but a fundamental criterion to ensure technical competence, financial capability, regulatory compliance and consumer protection. The concerns of licence holders have intensified following the consultative session, where Mari reportedly reiterated that non-licensed entities may participate in the bidding process and obtain licences subsequently. Stakeholders argue this approach introduces regulatory uncertainty and may give rise to legal complications.
Industry Demands: Withdraw and Reissue Framework
Industry representatives say the bidding framework should be withdrawn and reissued in line with the CCI decision. Participation should be restricted to entities already holding valid OGRA licences, or bidders should obtain the licence before being declared eligible. Licence holders emphasise they are not opposing competition but seeking a transparent, legally sound process. They argue that a level playing field can only be achieved when all participants are subject to the same licensing requirements before bidding.
Calls for Government Intervention
Stakeholders have called on OGRA, the Directorate General of Petroleum Concessions (DGPC) and the federal government to review the matter urgently and ensure the bidding process reflects the CCI's intent. Industry players, including Pakistan LNG and Natural Gas Supply Co, Ghani Glass, Wellhead and Universal Gas Distribution Company (UGDC), raised concerns that the CCI's decision clearly states the sale can only be made to a licence holder. Allowing unlicensed entities to bid would cause massive delays in gas monetisation.
Mari Energies' Position and Commercial Risk
Mari formally clarified it has discussed the matter at length with its legal counsels and cannot mandate an OGRA licence as a pre-bid requirement. It has already committed to this position in a public letter to OGRA, and conceding could result in litigation against Mari. Mari stated it will actively assist the winning bidder in securing the OGRA licence post-bid. It is ready to assume the commercial risk if the gas is not commercialised due to licensing delays, noting that the total 50 million cubic feet per day (MMCFD), including this 17.5 MMCFD, is already flowing to SNGPL in the interim.
