ISLAMABAD - The government for the first time disclosed that there is no government to government contract for the import of Liquefied Natural Gas (LNG), rather PSO will import LNG through Engro and will sell it to Sui Northern Gas Pipeline.
This was disclosed by Secretary Petroleum and Natural Resources to the Senate Standing Committee here on Wednesday. In a stunning disclosure the committee was also informed that PSO has received one vessel of substandard Furnace oil instead of LNG.
The meeting of the Senate Standing Committee on Petroleum and Natural Resources which was chaired by its chairman Senator Israrullah Zehri showed dissatisfaction to the matters pertaining to the import of LNG from Qatar, the delivery of substandard oil in LNG cargo, PSO role, the SNGPL transmission and distribution system, gas theft from the gas line in district Karak, non provision of gas to Balochistan and Saindak, etc.
The committee was informed that so far eight vessels of LNG have been imported, which also includes six from Qatar on FOB basis. PSO failed to satisfy the member of the committee regarding the import of substandard oil in LNG cargos and said that in one LNG cargo instead of gas, substandard furnace oil was imported.
The committee members have strongly protested the hiding of the fact by PSO and asked to submit the report, including the name of the supplier, importer and enquiry report, in the next meeting of the committee.
Regarding the availability of oil stock in the country, PSO informed the committee that the country has petrol stock of 8 to 10 days while the diesel stock is enough for 21 to 22 days.
The committee was also informed about the illegal gas connection from the 1600 km long pipeline in Karak and Gurguree, which cost Rs 5 billion annually to the national exchequer.
Senator Mohsin Aziz, Senator Nisar and Senator Baz Muhammad rejecting the claim made by the ministry and SNGPL regarding illegal connections said it is wrong to blame the law and order situation for the illegal connections. Karak is one of the peaceful district of KP and the gas utilities officials are involved and equally responsible in the gas theft, the Senators claimed.
A subcommittee was constituted to probe the matter of illegal gas connections and submit its report to the standing committee within two months.
Regarding the gas connection to the residential consumers the committee was informed that 1.4 million applications for the gas connection were pending with SNGPL, while 10 percent gas connections are being provided on urgent basis, within six months, with extra fee. SNGPL is also considering to enhance the demand notice fee from Rs25000 to Rs50000, the gas utility informed.
The committee has recommended to lift ban from new gas connection in the light of joint resolution passed by the house.
But the SNGPL has informed that currently it is not possible as there is gas shortage and plenty of applicants cannot be served with the available gas reserves. For the ongoing projects the government has allocated Rs 4 billion against the demand of the Rs 5 billion by the company, Managing Director SNGPL said.
The committee members have shown their concerns about the Saindak Copper project and said that after the 18th amendment the provincial government should adopt measures for the protection of this important national asset. Senator Yusuf Badini said that the federal or provincial government should take the operational control of the project as excavator, dumpers, plant and property belong Pakistan.
Senator Yusuf Badini said that Balochistan is providing gas to the country for the last 60 years, tons of gold and copper are excavated from Saindak, but even today majority of area in Balochistan don't have gas facility, facing high unemployment and lack of basic facilities. The government should take special measures to resolve the basic problems of the people of Balochistan, he added.