Govt issues 20 more CNG licences, despite ban

Licences given under pressure from influential lobbies.

ISLAMABAD: Despite a ban on licences for new compressed natural gas (CNG) stations, the government has issued 20 new marketing licences allegedly under pressure from influential lobbies, sparking a new controversy.

Petroleum Secretary Ijaz Chaudhry told the National Assembly Standing Committee on Petroleum and Natural Resources, in a meeting chaired by Sardar Talib Hussain Nakai on Monday, that the Ministry of Petroleum and Natural Resources had sent a summary to the prime minister, seeking approval of guidelines for giving marketing licences to around 20 CNG stations under pressure from the All Pakistan CNG Association and other influential people.

Officials of the Oil and Gas Regulatory Authority (Ogra) told the panel that licences for 500 CNG stations had been issued since the ban was imposed in 2008. In this regard, they said the National Accountability Bureau (NAB) had completed its investigation.

NAB has already pointed out in a report to the Supreme Court that Ogra had been involved in irregular award of licences to CNG stations in violation of the ban.

The ban was again imposed in April 2011 but officials told the panel that around 20 CNG marketing licences were issued to those who had valid licences and their gas metres had been installed on October 4, 2011. They had also made payments to lay the pipelines.

The stakeholders moved court after the ban. “There was pressure from influential people but I would not disclose their names,” Chaudhry said, adding people protested fearing their investments worth millions of rupees would be lost.

Succumbing to the pressure, the petroleum ministry sent a summary to the prime minister, who later approved guidelines on issuing new licences.

The secretary said the licences were issued in line with the approved guidelines that were given to the regulator Ogra. “I am ready to resign if proved that I am involved in any activity in violation of court directions,” he said.

The committee expressed serious concern over the issue and sought a list of new CNG stations as well as pending cases. It also asked the ministry to submit a detailed report on controlling gas crisis and gas theft in the next meeting.

The panel was told that gas consumption was increasing at 40 per cent per annum but production was growing at only 10 per cent. It also noted that not a single hydropower generation unit had been added for the last seven years.

According to the petroleum secretary, foreign oil and gas exploration companies were facing security threat in the country. “Gargari oil and gas field has come under rocket attacks whereas the next target may be Manzalai field. Poor law and order situation halted exploration activities, he said.

Chaudhry said work on Iran-Pakistan gas pipeline was under way and Rs35 billion would be generated from the cess on gas to finance the project.

Published in The Express Tribune, February 28^th, 2012.