Certain industry in Pakistan has started to consider purchasing gas directly from the E&P companies instead of buying it from the two state-owned gas suppliers (Sui companies). The opportunity arose after the Economic Coordination Committee (ECC) of the Federal Cabinet decided to allow the E&P companies operating in Pakistan to directly sell up to 35% of their share of gas to third parties. Earlier, the Petroleum Policy restricted direct sale up to 10% of the production while 90% of it was purchased by the government-designated buyers (mostly refineries and Sui companies).

Recently, the trade association of an industrial sector has started exploring interest of its members to enter into direct gas sale and purchase arrangements with the E&P companies. An invitation has been sent out to the members by the association. It is not yet clear if the association would set up an SPV and obtain a license to undertake this regulated activity. The other option is to purchase gas from a licensed gas reseller. The gas regulator has already developed and notified the framework for sale and transportation of gas by using gas pipeline networks of the Sui companies. Can we say a liberal economic policy is most likely to catalyse commercial activities!