First 4-6 cargoes violated PPRA rules: Ogra questions government over legitimacy of LNG imports

The federal government had been importing Liquefied Natural Gas (LNG) from Qatar against PPRA rules, confirmed officials at Oil and Gas Regulatory Authority (Ogra). The first four-six cargoes of the re-gasified LNG were imported by PSO on the basis of what a Sindh government official said an "executive order" of the Ministry of Petroleum. A highly-placed official at Ogra confirmed that at least four initial LNG cargoes were brought in without issuing a regular tender under PPRA rules.
"They say the imports were made with the consent of Minster of Petroleum on spot trading basis or whatever," the Ogra official said. "This has no meaning," he maintained. According to Tariq Ali Shah, director oil and gas at Sindh government's energy department, Chairman Ogra Saeed Ahmed Khan had taken a 'bold stance' against the federal government by refusing to ratify the PSO's initial LNG imports.
Also, he said while the federal government had being striving hard to deal with the pricing issue of LNG as a petroleum product thus through Ogra, Khan had brought the issue to its required category by holding public hearings. Monday saw Ogra chief Khan holding a public hearing on the review petition against provisional RLNG price determination here at a local hotel. Attended by representatives of PSO, SSGC, Al-Meezan Investment, CNG Association and other shareholders, the hearing saw Sindh government challenging the federal government over categorising RLNG as a petroleum product saying the same was "comingled gas" after being re-gasified and transmitted through national transmission pipeline.
"The RLNG policies should be set in the CCI while Ogra should deal with its pricing," said Director Shah. The Sindh government official quoted Ogra chief as having rejected PSO's initial imports as contrary to PPRA rules. "We made the imports on the basis of executive orders we received from the federal government," Shah quoted PSO officials as telling the Ogra chief.
"I go by PPRA rules and not the federal government's orders," Khan was quoted having replied. The director gas said even PPRA had in place a proper exemption process wherein the federal government was to put up its case for the consideration of a 5-6 member committee of federal secretaries. "The exemption once passed by the committee then would need the prime minister's approval," he explained.
What is the way forward? Ogra's next public hearing on the issue in question is due in Lahore on January 4. "We have asked the concerned to explain the federal government's stance on the matter, "an Ogra official told Business Recorder, requesting anonymity.
Meanwhile, during Monday's hearing Ogra chairman Khan heard the contentions of Fasihuddin Fawad of SSGC, Om Parkash of PSO, Ghias Paracha of CNG Association and Shah of Sindh govt. "Sindh government termed it unconstitutional if it bypasses CCI," said an Ogra spokesman. The Ogra chief advised the petitioners to fulfil "prerequisites" rather than basing their estimates on "assumptions", he said.