Spinwam gas bidding framework still under dispute

ISLAMABAD: Companies holding Oil and Gas Regulatory Authority (OGRA) gas marketing licences have renewed their objections to the bidding structure for Spinwam gas allocation, saying it remains out of step with the Council of Common Interests (CCI) decision governing the sale.

The concerns resurfaced after Mari Energies held a consultation session on June 17 and extended the bidding deadline to July 2, 2026, giving participants an opportunity to raise questions about the process. Industry representatives said the central issue was still unresolved: whether entities without an OGRA licence at the time of bidding should be allowed to compete and obtain the licence later.

Licence holders argue that allowing unlicensed firms to bid first and seek regulatory approval afterward undermines the purpose of a regulated third-party gas marketing regime. In their view, a bidder should not be treated as eligible unless licensing conditions have already been met, as the licence requirement is a basic test of technical capability, financial strength, regulatory compliance and consumer protection rather than a step to be completed after an award.

According to the stakeholders, concerns deepened further during the consultation, where Mari maintained that companies without licences could still take part in the bidding and secure the required approvals later. They say that position creates regulatory uncertainty and could trigger legal problems.

Call for revision of bidding terms

Industry representatives said the existing bidding framework should be withdrawn and issued again in a form that reflects the CCI decision. They said participation should either be limited to companies already holding valid OGRA licences or, at minimum, a bidder should obtain the licence before it is declared eligible.

Licence holders said they were not resisting competition but were asking for a transparent process that was legally sound. They argued that equal treatment of bidders was only possible if every participant was subject to the same licensing conditions before entering the bidding.

The stakeholders have urged OGRA, the Directorate General of Petroleum Concessions (DGPC) and the federal government to review the matter quickly and ensure the process matches the intent of the CCI decision.

Among the companies cited as raising objections were Pakistan LNG and Natural Gas Supply Co, Ghani Glass, Wellhead and Universal Gas Distribution Company (UGDC). They said the CCI decision clearly provides that the sale can only be made to a licence holder, and warned that permitting unlicensed parties to bid could lead to major delays in monetising the gas.

Mari defends its position

Mari Energies, for its part, has said it reviewed the issue in detail with its legal advisers and concluded it could not make an OGRA licence a mandatory pre-bid condition. The company said it had already communicated that position in a public letter to OGRA and believed any reversal could expose Mari to litigation.

Mari also said it would actively help the successful bidder obtain an OGRA licence after the bidding stage. The company added that it was prepared to bear the commercial risk if licensing delays prevented the gas from being commercialised, noting that the total 50 million cubic feet per day (MMCFD), including the 17.5 MMCFD under discussion, is currently flowing to SNGPL on an interim basis.