LNG plant to be functional in two months: PAC told

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ISLAMABAD: The Public Accounts Committee (PAC) was informed on Tuesday that Liquified Natural Gas (LNG) plant was near completion and would start commercial production of gas within two months.

The PAC met under the chairmanship of Leader of the Opposition in National Assembly Syed Khursheed Ahmed Shah. Members of the National Assembly Syed Naveed Qamar, Mian Abdul Manan, Sheikh Rohail Asghar, Raja Javed Ikhlas, Sardar Ashiq Gopang, Dr Azra Fazal Pechuho, Shafqat Mahmood, Shahida Akhtar Ali, Shaibzada Nazir Sultan, Junaid Anwar Chaudhry, Sheikh Rashid Ahmed and Rana Muhammad Afzaal, Secretary Petroleum and Natural Resources Arshad Mirza and other senior officialsof the ministry attended the meeting.

Managing Director Oil and Gas Development Company Limited (OGDCL) Zahid Mir told the PAC that the authority was currently producing 425 ton liquefied petroleum gas (LPG) per day.

He said at present the LPG sale was continued in a transparent manner. However, LPG dealers were very strong and various cases in that regard were in courts, he added.

Junaid Anwar Chaudhry and Mian Abdul Manan said a committee should be constituted to probe allocation of LPG quota during the tenure of former President Pervez Musharraf.

Zahid Mir said that all the record of LPG quota allocation was available and presented to the PAC.

Khursheed Shah, however, directed the ministry to present a detailed report on the matter in next meeting of the committee.

The PAC was informed that sale of LPG was 75,000 metric ton in year 2011-12 and it decreased to 41,000 metric ton in 2012-13.

Regarding audit objections of the department of year 2013-14, the PAC directed the ministry to surrender the amount at the end of the year which was not utilized so that it could be use for other projects.

Sardar Ashiq Hussain said financial discipline should be maintained in all the government departments.

On the audit report of the OGDCL, Zahid Mir informed the PAC that the production of white oil had been stopped due to the closure of Dhodak Oil Refinery. The production of sulphur had not been reduced, he added.

An Audit official said different oil companies and gas refineries had owed Rs 55 billion to the OGDCL in years 2011-12 and 2012-13, and Rs 17 billion was still outstanding.

The PAC observed it was a bad example of financial indiscipline in the department.

Secretary Petroleum and Natural Resources Arshad Mirza said allout efforts were being made to recover outstanding dues from the companies.

Naveed Qamar said the ministry was not forcing Sui Southern and Sui Northern gas companies to pay the money they owed. The detail about the recoverable amount with profit and loss should be reflected in the department’s account statements.

Arshad Mirza said the ministry would convene a meeting of Special Coordination Committee on the matter and inform the PAC within 15 days.

The Audit official informed the PAC that OGDCL had made recruitments without getting any No Objection Certificate (NoC) from the Establishment Division.

Naveed Qamar said that the copmany should have the authority to recruit suitable persons to compete with international companies.

The PAC directed that a letter should be written to the Establishment Division with reference to Companies Ordinance that companies should have authority to recruit people.

Khursheed Shah said the government hds imposed Gas Infrastructure Development Cess (GIDC), which was extra burden on the common men, who were already facing several financial issues.

Arshad Mirza said the GIDC placed with the Ministry of Finance and the Ministry of Petroleum and Natural Resources had claimed the amount.

He assured the PAC the GIDC amount would not go waste.