A press release issued by Pakistan Economy Watch (PEW) published in the Business Recorder dated December 22, 2012 regarding LPG terminal acquired by SSGC has been rebutted by Abbas Bilgrami, Managing Director Progas Pakistan Ltd. The following is rebuttal:
"1. The purchase of the Progas LPG Terminal was undertaken through a transparent process conducted by the Sindh High Court, Banking Bench. The SSGC participated in this auction on its free volition and through no coercion by third parties.
"2. The value of the Progas LPG Terminal according to independent valuers approved by the State Bank of Pakistan was estimated at US $120 million or in todays terms at over Rs 11 billion.
"3. Neither I and Omar Saboor are NOT owners of the company. The company is in fact an unlisted public limited company owned by:
a. KUB Malaysia Berhad a large public listed government owned co-operative with the large5t independent LPG business in Malaysia.
b. Progas Holdings Ltd a UK owned project development company with a focus on energy infrastructure in the Indian Ocean Rim.
c. Kuwait Gulf Link - A large logistics and port investment fund.
d. National Logistics Cell - Pakistans largest energy logistics business.
"4. Neither I nor Omar Saboor have left the country. We reside and work in Pakistan.
"5. Progas Pakistan Ltd was Pakistanis largest single investment in the LPG and energy infrastructure with over U5$40 million invested in storage, bottling, logistics, marine terminal and cylinders. This company became the third largest LPG business in a matter of 18 months. In the first twelve months it sold 5,000 Mt but within the third full year of operations it sold over 30,000 Mt of LPG. However a cartel ensured that the Progas business model was damaged through price manipulation, regulatory oversight and non implementation of the LPG Policy by the Ministry of Petroleum. This entire chronology of events is listed in the Competition Commission of Pakistan's ruling which is available as public record.
"6. The LPG Autogas market has existed illegally for the past two and a half decades. With over 250,000 vehicle owners, mostly rickshaws and older taxis operating on this fuel. These people had been criminalised due to LPG having been declared illegal in the transport sector. LPG in the Automotive sector was legalised some six years ago but due to a CNG lobby within the regulator and by the CNG industry LPG sales to the automotive sector have remained in the hands of illegal decanters and small back alley shops. It is CNG stations that are owned by rich politicians and influential individuals. LPG is used by middle and upper class consumers allowing for subsidy capture by the most well off in society. The PEW refuses to consider this. But wastes time in making false accusations against innocent parties.
"7. Azim Iqbal Siddiqui did not wait to quit from SSGC after a year acquiring the Progas LPG Terminal. His decision was a personal matter and little to do with someone forcing him to quit.
"8. The CNG crisis has little to do with the purchase of the Progas Terminal but everything to do with the shortage of Natural Gas, Unaccounted For Gas (UFG), lack of investment in the Exploration and Production sector due to poor pricing policies of continuous governments since the early 1970's.
"9. The SSGC purchased the asset after its board had approved this purchase and after undertaking a thorough proper process of due diligence.
"10. The Terminal in its first three years of operations handled over 100,000 Mt of LPG. It has handled in this last year alone over 25,000 Mt of LPG. Between its commissioning in 2007 and 2012 it has handled 70% of all LPG imported into Pakistan by sea. How could this be considered as being an unsuccessful project. The terminal handled LPG within one month of it being acquired by the SSGC. This terminal was NOT scrap but an operating asset which operated days before it was sold to SSGC."
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