Another difficult winter seems to be ahead for gas consumers. DESIGN: ASAD SALEEM
There is no end to the power and gas shortages that have continued to persist with critical challenges, which will add to the miseries of people in the coming winter season too.
Nepotism is widespread in state-owned energy companies that serves the interest of powerful lobbies. No doubt Petroleum Minister Shahid Khaqan Abbasi is striving to tackle the energy crisis, but interference from some powerful ministers and lobbies in energy companies has thwarted moves towards betterment. It seems that governance issues are getting out of control of the ministry.
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Take example of the top oil and gas exploration concern – Oil and Gas Development Company (OGDC) – that has been running without a permanent managing director for a long time.
Acting heads have been running the company’s affairs since the PML-N government came to power in mid-2013. Now, the control of the company has been given to a minister’s friend, Zahid Muzaffar.
Muzaffar has been appointed adviser to the petroleum minister in MP-I scale. Though a simple graduate, he has been made the chairman of OGDC.
Since then, the company is being headed by acting managing directors. Zahid Mir is the third officer that has been made the acting head. Mir was first appointed the chief operating officer, but after a week, he became the acting managing director.
Such moves have caused resentment among senior officers of OGDC. Mir appears to be just a puppet and real powers rest with the board chairman, who is said to have a final say in postings and transfers and the award of mega projects.
Top brass absent
In the case of Pakistan State Oil (PSO) too, the top management is missing. Almost all top officials of the company had been suspended following a petrol crisis in Punjab in January this year. Its board was also dissolved.
Now, PSO – the state-owned oil marketing giant – is being run by one man who took charge at the beginning of September. Managing Director Sheikh Imranul Haq has come from Elengy Terminal Pakistan Limited (ETPL), but his appointment has raised questions as both PSO and ETPL are involved in liquefied natural gas (LNG) business.
He has joined PSO at a time when the National Accountability Bureau initiated a probe into the award of the LNG terminal contract to ETPL, which is a wholly owned subsidiary of Engro Corporation. ETPL handles the arrival of LNG imports at the terminal whereas PSO is the LNG supplier.
The government has also offered a very high pay package to the new MD. In a notification, it said the salary would depend on the ratification of the company’s board. Yaqoob Sattar, who was looking after the company’s affairs for a few days until the arrival of Haque, gave the approval.
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PSO spokesperson, however, stressed that the acting head of the company gave the go-ahead in exercise of the powers conferred under Section 6(4) of the relevant Act.
Now, look at the appointment of Sui Northern Gas Pipelines Limited (SNGPL) Managing Director Arif Hameed who got an extension after retirement during the tenure of previous government. He was put into the place on the approval of prime minister, despite opposition from the Ministry of Petroleum to his appointment.
LNG supplies awaited
Such controversies have come in the way of a smooth functioning of energy companies and matters pertaining to energy supply and import.
Despite making efforts for a long time, the government has not been able to sign an LNG deal with Qatar in a government-to-government contract because of failure to finalise a payment mechanism.
Though an LNG terminal has been built, there is no gas for the consumers. The terminal is working below capacity as it has not enough imports to handle.
It may be surprising that the Oil and Gas Regulatory Authority has not been able to determine the price of LNG that has already been consumed by the consumers due to failure of PSO to provide the record of purchases.
Now, PSO has provided invoices, but the petroleum ministry is not ready to endorse them.
LNG was supposed to tackle energy shortages, especially in Punjab. However, there is no LNG and no increase in local gas supplies.
In this situation, another difficult winter is ahead for the gas consumers, particularly in remote areas, where they will be either looking for wood or LPG, the prices of which will skyrocket. Is there any difference between the PML-N and PPP governments when it comes to tackling energy shortages?
the writer is a staff correspondent
Published in The Express Tribune, September 7th, 2015.
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