SNGPL, Jazz clash over gas theft allegations

Contractor, hired to supply electricity to mobile tower, held responsible for gas theft

PHOTO: FILE

ISLAMABAD/LAHORE:

Sui Northern Gas Pipeline Limited (SNGPL) and Jazz, a major telecom operator, are embroiled in a bitter dispute over allegations of gas theft. Jazz has served SNGPL with a defamation notice amounting to Rs10 billion, while SNGPL vehemently denies the allegations, labelling them as baseless.

In a press statement issued late Wednesday night, SNGPL stated that an investigation conducted by the gas supply company found a third-party contractor responsible for gas theft, as the mobile company had assigned them the responsibility of electricity supply.

Earlier, in a strongly worded letter addressed to Ibrar Khan, Vice President Corporate & Economic Affairs at Pakistan Mobile Communications Ltd (Jazz), SNGPL asserted the legitimacy of its actions. It stated that a raid was conducted on a mobile tower owned by Jazz based on solid intelligence. The entire operation was carried out in the presence of law enforcement personnel, and all relevant evidence was meticulously recorded.

SNGPL highlighted that during the operation, a gas-fired generator, powered by an illegal gas connection, was found operational and supplying electricity to the tower. While acknowledging the presence of a standby diesel generator, SNGPL clarified that it was non-operational at the time of the raid. Additionally, electric power was unavailable during the operation.

Furthermore, SNGPL emphasised its unwavering commitment to the highest standards of corporate ethics. The company proudly serves over 7.4 million consumers through an extensive network covering Punjab, Khyber-Pakhtunkhwa (K-P), the federal capital, and AJ&K. SNGPL stressed that it has never labelled Jazz a “Gas Thief” in any of its statements and believes the alleged illegal activity is the work of individuals at a lower level within the organisation.

In response to the allegations, Jazz, Pakistan’s largest digital operator, has served SNGPL with a Rs10 billion defamation notice. Jazz categorically refuted SNGPL’s claims of gas theft at a site in Karak, K-P. The telecom company reiterated that none of its network sites across the country uses natural gas, a fact supported by evidence shared by SNGPL itself.

Jazz condemned SNGPL’s allegations as baseless and without merit. Accusing Jazz, a significant contributor to the national economy, of gas theft was described as frivolous and potentially damaging to investor confidence, with the potential to impact the country’s economy adversely.

Jazz underscored the legitimacy of its electricity and fuel arrangements and revealed agreements with third-party vendors for the exclusive supply of diesel fuel for its generators at multiple locations. The company reaffirmed its impeccable reputation and the trust it has built with its stakeholders.

The investigation, led by the Karak Bureau of Intelligence (KBI) based on SNGPL’s complaint concluded on Wednesday night holding the third-party contractor responsible for gas theft. According to sources, the federal government built pressure on the gas supply company to back off from its claims as the legal battle would hurt international investment.

In the meanwhile, SNGPL continues its anti-gas theft drive, raiding several businesses involved in meter tampering and illegal gas connections.

The SNGPL’s regional teams also raided an international fast-food chain, “Hardee’s” in Y block DHA Lahore, based on a complaint of meter tampering. After laboratory testing confirmed 100% tampering, the gas connection was immediately disconnected. In Islamabad, a well-known educational institution in sector G7 was raided for using an illegal gas connection. The institution had illegally consumed 130 hm3 of gas, equivalent to Rs1.5 million. With an outstanding amount of Rs2.6 million, the total now stands at Rs4.1 million.

SNGPL’ regional teams continue their raids in other cities of Punjab, K-P, and Islamabad. In Peshawar, the company disconnected 30 connections due to direct use of gas and illegal connections, with one FIR lodged. In Sialkot, 38 connections were disconnected for illegal gas use and the use of compressors.

These actions are part of SNGPL’s commitment to tackling gas theft, with the company processing these cases as per standard operating procedures and lodging FIRs against gas pilferers as per the law, according to an SNGPL spokesperson.

Published in The Express Tribune, September 14th, 2023.

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