ISLAMABAD (APP): Public Accounts Committee (PAC) on Wednesday examined the audit report for the year 2020-21 of Liquefied Natural Gas (LNG) and Re-gasified LNG, Ministry of Petroleum Division.
The committee met here at Parliament House with member national assembly Rana Tanveer Hussain, in chair. Members of committee, Members National Aaaemblies (MBAs) including Riaz Fatyana, Raja Riaz Ahmad, Muhammad Ibrahim Khan, Munaza Hassan, Khawaja Muhammad Asif, Sheikh Rohale Asghar, Hina Rabbani Khar, Shahida Akhtar Ali, Iqbal Muhammad Ali Khan, Malik Muhammad Aamir Dogar and Senator Mushahid Hussain Sayed also attended the meeting.
Senator Sherry Rehman also attended the meeting via video conference.
Secretary Petroleum Division briefed the committee about the background of LNG/RLNG market, Global spot of LNG market, gas supply to economy and LNG market value chain and challenges.
He informed the committee that LNG was being imported by two entities Pakistan State Oil (PSO) and PLL, adding that PSO imports an average of six cargoes per month.
He added that challenges of Pakistan’s LNG market included relationship between Petroleum and Power Divisions which is not on Take-or-Pay basis, adding that Annual Delivery Plan was based on assumption of stakeholders but fluctuates continuously.
The ministry official said trading in LNG futures required financial guarantees which Pakistan State Oil (PSO) and PLL were not able to provide, (Circular Debt issues).
Other challenges including downstream agreements with consumers were not on take or pay basis amid fluctuating demand.
The chairman of the committee said Ministry should ensure gas availability during winter. He said the ministry could reduce losses by efficiently utilizing its capacity. Secretary Petroleum said five new blocks were given to Oil and Gas Development Company Limited.
The committee recommended to expedite recovery in irregular reimbursement of other charges to LNG sellers worth Rs.2,231 million. The management explained that PLL has recovered US 12.7 million from several LNG suppliers.
The committee also recommended to recover the remaining amount and present it’s report to the committee within a month. The committee also settled all other highlighted audit paras of ministry of Petroleum Division.
