Rs122b loss for delay in import of LNG echoes in PAC

ISLAMABAD: The loss of Rs 122 billion for delay in import of LNG echoed in the Public Accounts Committee on Thursday as Minister of Energy Omar Ayub Khan challenged the scope of the PAC for taking a notice on it with writing a letter to the National Assembly speaker.

The PAC was informed that Omar Ayub Khan has written a letter to the NA speaker in which he stated that the PAC should focus on the audit paras instead of taking a notice on news reports. The meeting of the PAC was held with its Chairman Rana Tanveer Hussain in the chair in which the audit paras relating to the Power Division and the alleged loss of Rs 122 billion due to delay in import of LNG was taken up.

The Public Accounts Committee has decided to invite former prime minister Shahid Khaqan Abbasi, Miftah Ismail and Syed Naveed Qamar to assist the committee in understanding the whole issue of LNG and alleged misappropriation of Rs 122 billion due to delay in the import of LNG.

Rana Tanveer while speaking on the letter of Omar Ayub remarked that it seems that the Ministry of Energy is ignoring the PAC. He said the powers to the parliamentary committee were given by the Constitution. “I still remember that the father of Omar Ayub Khan always worked to strengthen the committees of the parliament being the National Assembly speaker,” he said. Secretary Petroleum Asad Hayauddin said: “We are answerable before the parliament and that was that reason that we also invite the partners of gas transportation and buyers. However, media anchors do not know the facts as there is a difference between theory and practical work.” He said two types of gas system and LNG are being used and the price of gas system ranges between 728 per MMBTU to 748 per MMBTU while the price of LNG is different. The officials of the SSGCL told the committee that LNG worth of Rs 35.4 billion was purchased but a loss of Rs 40 billion is being claimed. Rana Tanveer asked questions relating to the import of LNG. He asked about reasons for delay in establishing LNG terminals.

PAC Member Ayaz Sadiq said Shahid Khaqan Abbasi imported LNG but was arrested by the NAB. “Whether the NAB would take a notice on delay in import of LNG and alleged misappropriation or its target is only to arrest Abbasi.” He questioned.

PAC Member Naveed Qamar said 60 per cent quota of RLNG was given to IPPS but there was no take and pay contract with them. The secretary Petroleum told the committee that 70 per cent of LNG was utilized by the power sector while the remaining was provided to cement, CNG and zero-rated industries.

Senator Mushahid Hussain remarked that many decisions are being taken due to the fear of the NAB. PAC Member Noor Alam Khan questioned whether the cheapest LNG is available in other countries except Qatar. The officials of the Petroleum Division told the PAC if the agreement with Qatar is terminated, a loss of billions of dollar is expected. The officials said the agreements with three government power plants will expire during the current year. They said a long-term contact with the power plants based on take and pay has been terminated.

PAC Member Hina Rabbani Khar said the agreement for the purchase of LNG was made on the basis of take and pay but it was not known who was purchaser of LNG. The secretary Petroleum Division told the committee that LNG is being provided to the power sector.

Naveed Qamar remarked that no sale agreement on pay and take basis was made with IPPs. The secretary Petroleum Division told the committee the power sector is a major buyer of LNG. The officials of the Petroleum Division said the OGRA will issue the licence Inner Gas and Tabheer for LNG terminal by the next week. They said there were two big manufacturers of LNG Qatar Gas and ENI and in case of shortage, the spot purchase of LNG was made. They said LNG worth of Rs 35 billion was imported in the last three months. Rana Tanveer summoned Petroleum Division officials in the next meeting with full preparation for the briefing on the LNG sector. After consultations with the PAC members, Rana Tanveer decided to seek special assistance from Shahid Khaqan Abbasi, Miftah Ismael and Naveed Qamar on the matter of LNG.