PAC seeks intervention of petroleum division on purchase of RLNG between SSGCL & SNGPL.

ISLAMABAD:The Subcommittee of Public Accounts Committee (PAC) Wednesday sought intervention of petroleum division to resolve the longstanding issue of purchase of RLNG between SSGCL and SNGPL.

The audit officials informed the committee headed by Naveed Qamar that SNGPL purchased Re-Gasified Liquid Natural Gas (RLNG) under SWAP arrangement from SSGPL through Pakistan State Oil (PSO) without signing a tripartite agreement.

SNGPL purchased RLNG of Rs 95 billion from SSGPL via PSO with an agreement and sold it to Independent Power Plants (IPPs), CNGs, Fertilizer sector, Textile sector and General Industries for Rs.106 billion.

A gas transportation agreement was signed between SNGPL and SSGCL for provision of RLNG under SWAP arrangements.

The audit official objected that tripartite agreement was required to be signed between PSO, SSGCL and SNGPL for supply of RLNG to IPPs, CNGs, Fertilizer sector, industrial Sector and other RLNG consumers therefore the arrangement was irregular.

The management of SNGPL apprised the committee that tripartite agreement was initiated but it could hinder the deal to provide RLNG to IPPs, CNGs, Fertilizer sector, Textile sector and General Industries on urgent basis.

Therefore, the RLNG was purchased and sold under a framework and direction of the federal government and could not be termed as irregular in any respect.

The committee reprimanded the officials of law ministry for being clueless about the legal connotation of such aspects and asked the directorate to write a letter to the secretary law ill preparedness of law officers about audit paras.

Syed Naveed Qamar sought intervention of petroleum division to solve the matter at ministry level since all three entities, PSO, SNGPL and SSGCL are subordinate institutes of the ministry.

Referring the para to the Petroleum division, Naveed Qamar also sought compliance report in two weeks’ time.