TWO LOCAL LNGs COMPANIES NOW BELONG TO UAE

Pakistan’s competition commission approves UAE-based firm’s acquisition of two local LNG companies

The Competition Commission of Pakistan (CCP) decided to greenlight the acquisition of two local companies engaged in the establishment and operation of a Liquefied Natural Gas (LNG) terminal by a firm based in the United Arab Emirates (UAE) on Saturday.

The CCP is an independent regulatory authority responsible for promoting fair competition and protecting consumers from anti-competitive practices. According to an official statement, it took the decision to attract more foreign direct investment (FDI) and ensure the potential mitigation of gas shortages in Pakistan.

It said the two local companies were also involved in the import, storage, and distribution of LNG and Re-gasified Liquefied Natural Gas (RLNG) in the country. “CCP has processed the two mergers, approving the 100 percent acquisition of Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited by the UAE-based Bison Energy FZCO,” the statement continued. “CCP completed the Phase-1 competition assessments, conducted in accordance with Section 11 of the Competition Act, 2010,” it added. “As the proposed transactions did not raise any competition concerns, the mergers were approved.”

The UAE-based company has now acquired the complete shareholding of the two business entities from Diamond Gas International Japan Co. Limited. “The transaction will result in foreign direct investment in Pakistan and help alleviate the gas shortage,” the statement said.

Pakistan has faced a number of energy-related issues, including gas shortages, in recent years. These include the increasing demand slow pace of the supply, especially in winter when its usage intensifies for heating purposes. Additionally, the existing gas infrastructure in the country is outdated and leads to significant loss of gas during transmission.

Pakistan has also been seeking more FDI to financially strengthen itself amid an ongoing economic crisis that prompted its successive administrations to seek International Monetary Fund (IMF) bailouts to mitigate dollar liquidity crunch.

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