Monitoring Report
ISLAMABAD:
Members of the Senate Standing Committee on Petroleum on has asked the government to put the names of the officials of Hascol Petroleum on Exit Control List (ECL) owing to their alleged involvement in a fraud case of over Rs 66 billion.
Senator Fida Mohammad raised this demand in a meeting of the Senate body which was held under the chairmanship of Senator Mirza Abdul Qadir on Wednesday.
Senator Mohsin Aziz also said that a company (Hascol) has committed a fraud of more than Rs 66 billion.
Chairman Oil and Gas Regulatory Authority (OGRA) informed the senate committee that the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP) had not contacted with OGRA regarding alleged fraud by the official of Hescol. He said that Hescol has strategic storages.
The Petroleum Division told the Senate Standing Committee on Petroleum that the loss of gas sector in the winter season is around Rs 35 billion as the state owned-Pakistan LNG Limited (PLL) is faced with financial problems while Sui Northern Gas Pipelines Limited (SNGPL) has to pay Rs 400 billion and Pakistan State Oil (PSO) to pay Rs 150 billion. It further said that a highest forum should have the authority to approve an annual delivery plan for gas.
Secretary Petroleum informed the senate panel that the term of Qatar’s long-term agreement is about ten dollars per mmbtu. erm He said that 12 cargos imported every month to the country and out of them, five cargos imported under spot purchase and seven cargoes of Liquefied Natural Gas (LNG) imported under long term purchase agreement. He also said that PGPC terminal has been operating at low capacity due to some reasons. The daily rent of the LNG terminal is $242000, h esaid.
Secretary Petroleum added the LNG terminal wants to sell LNG directly to the consumers, while gas companies are of the view that if large sectors withdraw from the use of imported RLNG, their system will not work. He said that a feasibility study is underway to build LNG storage in Sindh at a cost of around US$1 billion.
Secretary Petroleum Dr. Arshad further said that the loss of gas in winter is Rs. 35 billion. The petroleum division had told PAPRA that its law does not suit LNG.
Regarding, LNG purchases, PPRA has given exemption in the rules. PAPRA has told that there will be no condition of 15 days on-spot purchase, said Dr. Arshad.
The chairman of the senate committee said that the federal government should look into the LNG market in advance.
