ISLAMABAD: Cabinet Committee on Energy (CCOE) on Thursday took stock of the findings of an inquiry into the dry docking issue of a Floating Storage Re-Gasified Unit (FSRU) and found the terminal operator in violation of the contractual agreement.
The delay in the dry docking by Engro Elengy Terminal Private Limited (EETPL) was suspected to have resulted in a reduction in the daily delivery and storage capacity.
Now the country’s petroleum regulator has to work out a plan for legal enforcement.
On recommendations from Oil and Gas Regulatory Authority (OGRA), the CCOE would decide the steps to be taken to avert such a crisis-like situation in the future.
The CCOE met under the Chairmanship of the Federal Minister for Planning, Development, and Special Initiatives Asad Umar.
As per the minutes of the meeting, Petroleum Division presented a summary for the approval of the Development Plan for the oil and gas sector.
The main objective of the plan is to assist the Energy Working Group of China-Pakistan Economic Corridor (CPEC) in finalising its investment for the development of the oil and gas sector of Pakistan, by providing a comprehensive database of information on the country’s energy profile, forecast, and various planned and agreed energy projects.
The committee directed Petroleum Division to define specific policy interventions within 30 days and present them before the CCoE.
CCOE approved the summary of the Transmission System Constraints Removal Plan presented by the Power Division.
It was informed that the peak transmission capacity of the national grid system in July 2018 was 20,811 MW and in August 2021 it clocked in at 24, 564 MW. In 2023, the transmission capacity will be increased up to 33,500 MW.
CCoE appreciated the work done by Power Division and directed that in order to implement the ambitious plan the Power Division should keep a track of the developments.
The chair said that once the constraints were removed not only unmet demand would be served in the country but merit order exceptions would also reduce.
Federal Investigation Agency (FIA) presented a report on the status of Inquiry/ Investigation on Petroleum Crises.
The meeting was told that petroleum marketing companies set up more illegal petrol pumps across the country than OGRA approved outlets.
It said FIA Lahore arrested the CEO Fossil Energy Nadeem Butt, OGRA Ex-member Gas Amir Naseem, Member Oil Abdullah Malik and DG Oil of the Ministry of Energy and Petroleum Shafiullah Afridi, and Assistant Director Oil Imran Abro.
The 4-day physical remand of the five accused was obtained on 31 October and now all the accused had been sent to judicial lock-up (jail), the FIA officials informed the committee.
The added that some of the accused had obtained interim bails, while the agency was in the process of freezing their bank accounts. The arrested were accused of colluding with illegal petroleum marketing licences, illegal petroleum import quotas, and buying and selling of illegal petroleum imports, causing billions of rupees in losses to the national exchequer and money laundering of billions of rupees earned from it.
Further, ten oil marketing companies had gone in writ petitions and Intra Court Appeals and in some cases the FIA had been restrained by the court till 29 November (next date of hearing).
The meeting was attended by Minister for Finance, Minister for Energy, Minister for Maritime Affairs, Advisor to PM on Commerce and Industries, Chairman OGRA, Chairman NEPRA, representatives of regulatory authorities and senior officials of ministries/divisions.