Press release UGDC Receives OGRA License to Import and Distribute LNG

UGDC Receives OGRA License to Import and Distribute LNG

Islamabad, February 25, 2016 — Universal Gas Distribution Company (Pvt) Limited (UGDC) proudly announces the receipt of a formal license from the Oil and Gas Regulatory Authority (OGRA) to import and distribute liquefied natural gas (LNG) across Pakistan. This landmark development positions UGDC as the first private sector entity authorized to supply imported LNG directly to compressed natural gas (CNG) stations nationwide, marking a significant shift in the country's energy sector dynamics

Established as a joint venture by CNG operators under the leadership of All Pakistan CNG Association (APCNGA) Chairman Ghiyas Abdullah Paracha, UGDC aims to revitalize the CNG industry by ensuring a consistent and affordable energy supply. The OGRA license, granted for an initial period of 10 years, empowers UGDC to procure LNG from global suppliers, re-gasify it at approved terminals, and distribute it through existing gas utility networks under third-party access agreements.​

"This milestone is the culmination of nearly 19 months of rigorous effort, regulatory compliance, and stakeholder engagement," said Mr. Paracha, who also serves as UGDC's CEO. "Our initiative represents a proactive approach by the private sector to address energy shortages, reduce environmental impact, and offer consumers a cost-effective alternative to petrol."​

UGDC’s entry into the LNG market is expected to:​

  • Revive thousands of dormant CNG stations, particularly in Punjab, by providing a reliable gas supply.

  • Offer CNG at prices approximately 30% lower than petrol, delivering substantial savings to consumers.​

  • Reduce Pakistan’s oil import bill, contributing to economic stability.​

  • Mitigate urban pollution by promoting cleaner fuel alternatives.​

The company is currently finalizing gas transportation agreements with Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) to facilitate the distribution of re-gasified LNG. Additionally, UGDC is in discussions with Pakistan State Oil (PSO) and other international suppliers to secure LNG imports, ensuring a diversified and stable supply chain.​

UGDC's initiative aligns with the government's 2011 LNG policy, which encourages private sector participation in the energy market. By leveraging existing infrastructure and adhering to regulatory frameworks, UGDC is poised to play a pivotal role in Pakistan's journey toward energy self-sufficiency and environmental sustainability.​

For media inquiries, please contact:

Universal Gas Distribution Company
Email: media@ugdc.com
Phone: +92 51 111 888 432

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Universal Gas Distribution Company (UGDC) is Pakistan’s first private limited gas distribution company, engaged in the sale, purchase, import, and distribution of gas to commercial and industrial customers nationwide.

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Lahore: 6th floor, Askari Corporate Tower, Main Boulevard Gulberg 3.

Karachi:  Plot 12 C, Zulfiqar Commercial Street No.6, Phase 8 Zone A, DHA.

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