Owing to the growing demand for natural gas, the Middle East and Africa have become a major focus for the OTC gas dispensing industry. As a result, the South China’s Gas Exporting Countries have been forced to look for alternative markets for their gas exports. As a result, the OTC category of the Gas industry has also been introduced in the Middle East and Africa.
With the OTC category, the gas industry allows gas exporters to sell their gas directly to the end-buyers, bypassing the intermediaries and ending the middleman business. The OTC category also eliminates the risk of piracy in the international oil and gas market, which is one of the major concerns of the Middle East and Africa countries.
Here is a list of the OTC Category One licenses granted to the companies operating under this category in the Middle East and Africa.
What is an OTC Gas License?
An OTC-gas-license is a license granted by the competent regulatory authority to an individual or company to operate a specific type of CNG-based commercial gas system.
This type of license is often called a “one-off” license or a “fixed” license. The term “OTC” refers to the fact that this license type is granted on a “per-kilowatt” basis.
However, this article will mainly focus on the “OTC” category of licenses.
OTC Gas License – overview
The OTC category of the license business is a popular and flexible way to sell gas. The OTC category is different from the general license business model in that it does not require the licensee to hold a specific type of license. It also does not require the licensee to be an established company with a track record in the market.
Instead, an OTC license is granted to an “out-of-town” company. Out-of-town companies can sell gas into the OTC market on a “per-kilowatt” basis to any company that has applied for a license to operate in the area.
This is called the “one-time, fixed” license model.
The OTC category also differs from the regular license market in that it does not require the licensee to have a minimum amount of assets.
This means that the licensee does not have to have a large amount of cash flow to be able to operate in the market.
The OTC category also does not require the licensee to hold a valid permit from the regulatory authority in the country where the sale is to take place.
There is no minimum amount of assets requirement in the OTC category either. As long as the company has the necessary funds to operate in the market, it can apply for an OTC license.
OTC Gas License – overview – Part 2
The OTC category also allows gas companies to sell gas at a loss. Additionally, some countries also have a “no-roc” or “no-ros” license. This means that the gas producer does not have to make any investment in the infrastructure required to bring the gas to the market.
This license type is similar to the regular license model in that the company that applies for the license simply has to provide the regulatory authority with a certain amount of gas.
However, in the “no-roc” license, the company does not have to bring the gas to the market. Instead, it can sell the gas to a low-interest loan provider that will then resell the gas to end-buyers at a lower price.
These low-interest loans are often used to help countries transition from using cash-only to using digital currency.
OTC Gas License – overview – Part 3
Finally, some countries also have a government-granted license. This is sometimes referred to as “security” or “anchor” gas. This license type is similar to the regular license model in that the company simply has to register with the regulatory authority.
The main difference is that the security license does not expire and can be used for as long as the company wishes to operate in that country.
OTC Gas License – overview – Part 4
Some of the major companies operating in the OTC market are BP, Chevron, ExxonMobil, Royal Dutch Shell, Statoil, Total and Woodside.
Other major players in the area include Mitsui, Sumitomo, Nippon Oil, Sumitomo Corp., Mitsubishi, Nippon Kōgyō, and many more.
OTC Gas License – overview – Part 5
The major advantage of OTC is that it provides a more flexible way to sell gas. Since the OTC category does not require the licensee to have a specific type of license, it allows the company to operate in areas where they do not otherwise have a presence.
Additionally, OTC allows the companies to specialize in certain regions and offer services only to certain types of customers.
The flexibility of OTC also allows the companies to change their business model as the market and customers demand.
We have covered a lot of ground in the last few sections. To finish up, here are some final thoughts on the OTC category from a market researcher’s point of view:
“OTC is a flexible and popular way to sell gas. It uses simple commodity swaps and does not require any regulatory approvals or authorizations.
It is often used by small independent companies to sell gas to small or nontraditional customers.