Islamabad: The Competition Commission of Pakistan (CCP) has approved the LNG supply chain component of the Share Purchase Agreement (SPA) between Diamond Gas International, a subsidiary of Mitsubishi Corporation, and Bison Energy FZCO. This approval, valid until December 2025, encompasses critical elements of the agreement related to the LNG supply chain management in Pakistan.
According to Competition Commission of Pakistan, the SPA allows Diamond Gas International to remain involved in the LNG procurement process even after its shares in Tabeer Energy (Pvt) Limited (TEPL) and Tabeer Energy Marketing (Pvt) Limited (TEMPL) are sold to Bison Energy. This decision ensures that Mitsubishi can continue its engagement in Pakistan’s LNG sector following the transaction, which was finalized in December 2023.
The CCP’s approval comes with specific conditions aimed at maintaining transparency and fairness in the LNG procurement process. These include requirements for adequate disclosures in the LNG bidding documents about the ongoing arrangement between Diamond Gas and Bison Energy. Additionally, any changes in the regulatory regime affecting TEPL and TEMPL, or alterations in pipeline capacity allocations for a new LNG terminal, would prompt a review by the CCP to assess market implications.
This exemption is part of broader efforts by the CCP to encourage foreign investment and enhance the technical and commercial dynamics of Pakistan’s energy sector. Mitsubishi Corporation, a significant player in the global LNG market with investments in 12 LNG producing projects, brings substantial expertise and economic benefits to Pakistan’s energy infrastructure.
The CCP’s decision under Section 9 of the Competition Act, 2010, highlights its commitment to fostering economic progress while balancing potential anti-competitive effects. This strategic move is expected to facilitate further foreign direct investment and enhance the ease of doing business in Pakistan, particularly in the energy sector.