Opposition in Senate slates govt for ‘corruption’ in LNG deal

ISLAMABAD: The government in the Senate Monday was slammed for alleged massive corruption in the liquefied natural gas (LNG) deal with Qatar in total disregard to PPRA rules and lack of transparency, forcing the Senate Chairman Mian Raza Rabbani to refer the matter to the house committee on natural resources.
Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi failed to give satisfactory answers to the questions raised by a number of opposition legislators. One opposition senator alleged that the LNG deal scam would be the biggest of 21st century.
On a commenced motion moved by Senators Saeed Ghani of Pakistan People’s Party (PPP) and Ilyas Bilour of Awami National Party (ANP) to discuss the issue of LNG import from Qatar and the agreement made or proposed, the opposition senators demanded that the agreement details be made public.
PPP parliamentary leader Senator Saeed Ghani alleged that the secret LNG deal with Qatar showed there was something fishy due to which the government was not making the agreements public. He went on to say that after doing all the deal by itself, the government was now bent upon making Sui Southern Gas Pipelines Limited (SSGPL) and Sui Northern Gas Limited (SNGPL) scapegoats to save its own skin.
Ghani pointed out that the MDs of SSGPL and SNGPL had been threatened with dire consequences like firing from the job if they did not sign the deal aimed at putting the liability on the oil producing companies while they were kept in complete darkness when the deal with Qatar was signed. The PPP senator said that the first cargo of LNG exported by Qatari supplier – Qatargas – that arrived in Karachi last month was procured by Pakistan State Oil (PSO), while the deal was struck by a private company – a clear contrast which gives birth to controversies due to secrecy of the deal.
Another burden to the national kitty, according to Senator Ghani, is 2,72,000 dollars penalty, which the government would have to pay to the Engro, if it did not use the LNG terminal. He said that it would take some eight days for the ship to bring the LNG consignment from Qatar, but the government would have to pay the said amount at any cost.
ANP’s Senator Ilyas Bilour pointed out that the minister was quoted in media that Qatar would provide the LNG to Pakistan at 8 per million dollars British thermal units (MMBTU), which was a lot more as compared to the prices of other countries which purchase LNG from Qatri government.
Senator Taj Haider of PPP said that the import would make the discovery of the wells in different provinces and added there was a need to create provincial oil and gas development companies in line with Articles 172 and 158. PTI senator Mohsin Aziz alleged that the LNG deal would be the biggest scam of the 21st century, adding there is need to make the agreements public as it is not a confidential document.
Aziz termed the deal as economic terrorism and called on the chair to pass a ruling banning the import of LNG unless the terms and conditions were shared with public. The chair then referred the matter to the House concerned committee.
Senator Farhatullah Babar said that the way it was being done, it showed that it was not only being managed mysteriously but was also full of corruption, adding the 272,000 dollars which the government would have to pay even if it did not use the terminal accumulates to 97 billion dollars per year, which he said was self-explanatory how transparent the agreement was.
Shahid Khaqan Abbasi had to face tough questions from opposition leader in Senate Aitzaz Ahsan, who made it really difficult for the minister, forcing him to give in by requesting the chair to refer the matter to the house committee where he would brief the enraged lawmakers through an in-camera briefing.
He said that the LNG was imported by PSO on behalf of a private company as the company had no experience. He said that the price for the LNG had not yet been finalised, adding Pakistan would get the cheapest price in the whole Asia.
But this irritated Chaudhry Aitzaz, who took the minister to task, saying how could you justify that the price was yet to be finalised as the first consignment of the LNG had already arrived.
To this, the minister had nothing to say except politely submitting to the opposition leader by saying he was ready to give an in-camera briefing to the house and even ready to appear before the committee.