OGRA grants gas marketing licence to Essen Gas as private sector expands into downstream supply

The Oil and Gas Regulatory Authority (OGRA) has given Essen Gas Marketing & Distribution (Private) Limited, a Lahore-based firm, permission to sell gas from indigenous fields. According to Profit, the licence, numbered NG-52/2026, lets the company supply households, businesses and factories through third-party access. The initial two-year term begins on September 14, 2026, as falling domestic output and gas-sector circular debt push the government to widen private participation.

Essen Gas has a provisional arrangement with United Energy Pakistan Limited (UEPL) for gas from the Tibri-1 field in the Kalchas South Block, backed by a memorandum of understanding. Before any supplies begin, the company must sign a binding sale and purchase contract with UEPL and obtain OGRA approval. The licence also bars purchases of volumes already allocated to state-nominated buyers.

Essen Gas plans to carry its gas over current transmission lines of SNGPL and SSGCL rather than building a separate long-distance pipeline, subject to capacity and tariffs. The licence also prohibits acquiring a controlling interest in those transmission utilities. Ahsan Majeed, the founder and chief executive, leads the firm, which also plans virtual pipeline services using LNG and CNG, though the grant alone does not mean deliveries have begun.