Ministry, Ogra row on LPG yet to be settled

ISLAMABAD - The differences between Oil and Gas Regulatory Authority (OGRA) and Explosive Department of Ministry of Industries & Production over LPG policy yet to be settled as both put the human lives on risk because of not finalizing the policy issue regarding safety matters of oil and gas installations. Oil and Gas Regulatory Authority (Ogra) and explosives department of the Ministry of Industries and Production are ostensibly at loggerheads over safety issues of oil and gas installations as row between both stakeholders has deepened further, sources said on Wednesday. It was learnt from official sources privy to the development that series of meetings attended by some stakeholders including Ogra and ministry of Industries and Production could not resolve the controversy pertaining to safety issues of oil and gas installations so far. These meeting have been conducted in the premises of Petroleum Ministry to finalise the proposed draft of LPG Policy, 2011 drafted by Ogra. But both entities are out to claim that they were the only entities empowered to ensure safety of Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) and oil installations by appointing third-party inspectors. It might be worth mentioning here that earlier, Ogra was dealing with safety issues and had allegedly appointed its favourite third party inspectors to check CNG and LPG installations. However, Ogra is mainly concerned with pricing, marketing, tariff, duties and taxes, supply of CNG, LPG and LNG, sources said. A controversy between Oil and Gas Regulatory Authority (Ogra) and explosives department of the Ministry of Industries and Production over regulating safety issues of oil and gas installations could not ended despite the intervention of Cabinet Division till this effect, sources said, adding that a committee, formed by the Cabinet Division and headed by the Secretary Ministry of Industries & Production has decided that the explosives department is the only entity empowered to ensure safety of Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) and oil installations by appointing third-party inspectors. Ogra is not agreed to revise its proposed draft of LPG Policy 2011 in line with the directions of Cabinet Division pertaining to safety issues of oil and gas installations and has not admitted it the domain of the explosives department of the Ministry of Industries and Production, sources added. While confirming the said differences, Mansoor Muzaffar Acting Chairman Ogra, shared to TheNation that the Explosives Department of the Ministry of Industries and Production is supposed to deal with issues pertaining to explosive materials but whereas the matter of LPG is concerned, it does not fall in the said category. He categorically said hydrocarbon comes in the jurisdiction of Ministry of Petroleum and Natural Resources so the Explosives Department of the Ministry of Industries and Production has nothing to deal with it. OGRA has already backtracked its decision to register the Liquefied Petroleum Gas (LPG) distributors that would have disastrous implication in general public and consumers in the country. In this way Ogra through it earlier decision has put the human lives at risk by declaring its own decision regarding the registration of authorized distributors of Liquefied Petroleum Gas (LPG) marketing companies with authority null and vide. However, market sources while talking to this scribe said Ogras move to issue separate licenses for gas tankers was unfair as the authoritys rules did not clearly state that it could issue such licenses. On its part, the explosives department claimed that it has powers to regulate safety matters of marketing companies. It is testimony of the fact that the disagreement between Ogra and explosives department erupted when the latter started directing LPG marketing companies to obtain its license for gas tankers, and storage and refueling plants. The department accused Ogra of interfering in its affairs by forcing the LPG marketing companies to obtain the authoritys licenses. Reportedly, Explosives Department Chief Inspector Haroon Rehman has said that we had approached the Cabinet Division over the issue, which formed a committee under the chairmanship of industries secretary. We have also written letters to those companies, which were already working and hired by Ogra, to participate as third party inspectors, Explosives Department Chief Inspector said. Reportedly a letter written by the Ministry of Industries to the Cabinet Division says that after detailed discussions in meetings and examination of relevant rules and regulations, the competent authority (industries secretary) has decided that the explosives department is responsible for safety of the human lives and properties at large under the Petroleum Act 1934 and Explosives Act 1884. It is relevant to mention that according to Sections 5 and 6 of Explosives Act 1884 and Sections 4 and 5 of Petroleum Act 1934 and rules framed under, the Department of Explosives is empowered to grant approval of design, specification standards, import and manufacturing and manners of installation of all sort of compressed/ liquefied gas containers (cylinders, vessels), petroleum storage tanks, compressors, dispensers, piping, fittings, allied equipment and all kind of safety devices. Additionally, according to Section 7 of Explosives Act 1884 and Section 26 of Petroleum Act 1934, the Department of Explosives is an entity empowered to appoint third party inspectors to enter for inspection, certification and verification of CNG stations, LPG plants, LPG automotive stations, petrol pumps, bulk petroleum oil and other petrochemicals depots, all sort of CNG, LPG, LNG and industrial gases carriers and containers (cylinders, vessels) etc.

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