CCoE presented with plan to uplift oil, gas sector

Committee directs Petroleum Division to define specific policy interventions within 30 days

ISLAMABAD:

The Petroleum Division on Wednesday presented a summary to the Cabinet Committee on Energy (CCoE) for the approval of a development plan for the country’s oil and gas sector.

The meeting of the CCoE, held under the chairmanship of Federal Planning and Development Minister Asad Umar, was informed that the main objective of the plan was to assist the Energy Working Group of the China-Pakistan Economic Corridor (CPEC) in finalising its investment for the development of the oil and gas sector by providing a comprehensive database of information on the country’s energy profile, forecast and various planned and agreed projects.

The committee directed the Petroleum Division to define specific policy interventions within 30 days and present them to it.

The CCoE also approved the summary of the Transmission System Constraints Removal Plan presented by the Power Division.

It was informed that the peak transmission capacity of the national grid system in July 2018 was 20,811 MW, and in August 2021 it was 24, 564 MW. In 2023, the transmission capacity will be increased to 33,500 MW.

The CCoE appreciated the efforts of the Power Division and directed it to keep a track of the developments.

Umar said that once the constraints were removed, not only the unmet demand would be sorted out, but merit order exceptions would also be reduced.

The Federal Investigation Agency (FIA) informed the panel about the progress it had made into its probe into the June 2020 fuel crisis.

It informed the committee that it had arrested the CEO of Fossil Energy as well as Petroleum Division and Oil and Gas Regulatory Authority (Ogra) officials for their alleged involvement in the crisis.

The country had faced a petrol crisis in June 2020, when oil prices had crashed because of the Covid-19 lockdowns.

The Petroleum Division had imposed a ban on the import of petroleum products as stocks were piling up at refineries. Then it had suddenly lifted the ban to facilitate some oil marketing companies (OMCs).

At that time, Ogra had also imposed multimillion rupees fine on some OMCs.

Due to the curtailment of fuel supply to their retail outlets by some OMCs, the entire burden was shifted onto the Pakistan State Oil (PSO), which had suffered a multibillion rupees loss because of enhanced oil supply to overcome the crisis.

The FIA presented the findings of its report on the status of its investigation into the crisis.

It was informed that marketing companies had set up more illegal fuel pumps across the country than Ogra had approved.

The FIA Lahore arrested Fossil Energy CEO Nadeem Butt, ex-Ogra member Gas Amir Naseem, Ogra Member Oil Abdullah Malik, Energy and Petroleum Ministry DG Oil Shafiullah Afridi and Assistant Director Oil Imran Abro.

A four-day physical remand of the five men was obtained on October 31 and now all of them had been sent to judicial lock-up.

Some of them have obtained interim bails while the process of freezing their accounts is under way.

Ten OMCs have gone in writ petitions and intra-court appeals and in some cases the FIA has been restrained till the next date of hearing on November 29.