- Uzma Adil takes over as SNGPL acting MD as LNG import issue begins to haunt govt
- OGRA refused determining RLNG sales price arguing PSO procured and sold product worth Rs 34b without any price notification
Sui Northern Gas Pipelines Limited (SNGPL) Managing Director (MD) Arif Hameed on Wednesday submitted his resignation to the board of directors following the controversy over his dismissal by the government and restoration by the Lahore High Court (LHC).
Following Hameed’s resignation, Uzma Adil has taken over as caretaker SNGPL MD.
Previously, Ministry for Petroleum had removed Hameed from the position. However, LHC reinstated him on his original post and asked the government to submit an explanation in this regard on September 17.
Hameed was caught in the ire over the issue of import of Qatari Liquefied Natural Gas (LNG) with Petroleum Minister Shahid Khaqan Abbasi accusing the SNGPL MD of having “vested interests”.
Speaking during Channel 24’s programme Debate and News Analysis on Wednesday, Pakistan Today Editor Arif Nizami revealed that Hameed had met the Punjab Chief Minister Shehbaz Sharif five days ago to discuss the issue. According to him, Hameed told Shehbaz that he would have resigned on his own if the government had asked him instead of sacking him unceremoniously.
Per reports, the petroleum minister had pressurized Hameed over the LNG issue without taking into account the “loopholes” in the agreement which misses out on the specifics of the deal.
Previously, Oil and Gas Regulatory Authority (OGRA) had refused to determine the RLNG sales price arguing that the state-owned Pakistan State Oil (PSO) has procured and sold the product worth Rs 34 billion without any price notification.
Confirming that there are two major irritants on the part of the government that hampered a long-term supply contract with Qatar for LNG, Abbasi had claimed to have received threats as well as offers of financial rewards from the oil mafia in exchange for giving up the LNG project.
“There is an oil mafia… I was lured and intimidated not to work on the LNG terminal,” said the minister, adding that he was offered monetary benefits in exchange for signing some summaries that were brought before him.
The minister said he had held a meeting with Saeed Mehdi, chairman of the SNGPL board of directors, and had asked him to take care of the board and the company’s management, which could not deliver on LNG import.
Citing the impediments for a long-term LNG sale-purchase agreement for 15 years with Qatar, Abbasi said the ministries of petroleum, finance and power had not finalised a payment mechanism for LNG import. Also, the government had not ensured standby letters of credit payable to Qatar Gas, while similar SBLCs were to be issued by independent power producers (IPPs) under the gas-supply agreement, he added.