ISLAMABAD: Without getting gas sale license from Oil and Gas Regulatory Authority (OGRA), an unlicensed gas company has allegedly been involved in the illegal sale of unprocessed gas to the Compressed Natural Gas (CNG) stations since 2020, it was learnt on Wednesday.
According to sources, M/s Jura Energy Corporation has been selling gas to an unlicensed gas company, M/s Konnect Gas (Pvt.) Ltd, since 2020, while M/s Konnect, without obtaining a license from OGRA has allegedly been involved in providing unprocessed gas to the CNG stations, posing threat to the lives of citizens. However, Transparency International Pakistan (TIP), in a letter dated October 2, 2023, titled “Complaint on the Violation of Pakistan Petroleum (E&P) Rules 2001 and Natural Gas Regulatory (Licensing) Rules 2002 Due to Unauthorized Third-Party Gas Sale by Konnect Gas (Private) Limited, a subsidiary of Jura Corporation,” to Director General (DG) Petroleum Concession (PC), Ministry of Energy (Petroleum Division), requested to look into the allegations of the complaint and if found to be correct, take action against M/s Konnect Gas (Pvt.) Ltd for its illegal activities of providing unprocessed gas to CNG stations posing threat to the lives of citizens under applicable laws and rules. And the petroleum division is expected to take stern action soon over the alleged violations of applicable laws and rules, said sources.
According to the allegations made in the complaint, in 2020, M/s Jura Energy Corporation publicly announced through a press release the commencement of gas sales from the Sara and Suri Leases to M/s Konnect Gas under the guise of a third-party arrangement. Similarly, the website of Jura Energy also reflected M/s Konnect Gas as the buyer to the Sara Suri Fields while M/s Konnect Gas knowingly and willfully have engaged in the unlawful sale of unprocessed gas since 2020. Furthermore, in April 2019, M/s Konnect Gas submitted its license application to OGRA which OGRA unequivocally rejected in April of 2022 due to M/s Konnect Gas’s failure to meet the stipulated criteria.
However, despite OGRA’s rejection of M/s Konnect Gas application for license, the company has been illegally supplying unprocessed gas to CNG stations.
TIP has reviewed the allegations of the complaint, prima facie, the allegations seem correct, said TIP letter to DGPC.
As per sources, M/s Konnect Gas had submitted an application to OGRA on 09th April, 2019 for grant of license for sale of Flare Gas from Sara and Suri Gas Fields of district Ghotki-Sindh. However, on finding certain deficiencies and constant failure in submission of requisite data/information by M/s Konnect Gas (Pvt.) Limited for 2.5 years, the Oil and Gas Regulatory Authority (OGRA) rejected the application of M/s Konnect Gas on 15th April, 2022 and declared that M/s Konnect was not a licensee of OGRA to undertake any regulated activities.
According to OGRA, M/s Konnect Gas (Pvt.) Limited had applied for grant of license for sale of flare gas from (Sara and Suri Gas Field) on 09-04-2023 which was evaluated by the concerned departments of OGRA and found certain deficiencies in requisite documentations of required under the applicable provisions of Natural Gas Regulatory (licensing) Rules, 2002.
Upon constant failure in submission of the requisite data/information by the applicant for 2.5 years the Authority considered the matter and rejected the applications of M/s Konnect Gas (Pvt.) Ltd on 15-04-2022, therefore, M/s Konnect Gas (Pvt.) Ltd is not a licensee of OGRA to undertake any regulated activities, said OGRA’s letter dated 08th September, 2023, a copy of which is available with this scribe.
Surprisingly, prior to the cancellation of M/s Konnect Gas’s license application by OGRA, M/s Jura Energy Corporation on October 13, 2020 publicly announced through a press release the commencement of gas sales from the Sara and Suri Leases to M/s Konnect Gas under the guise of a third-party arrangement. The website of Jura Energy also reflected M/s Konnect Gas as the buyer to the Sara Suri Fields, said sources.
M/s Konnect has been allegedly involved in illegally supplying unprocessed gas to the CNG stations since 2020 and posing serious threat to the lives of citizens, they added.
It is pertinent to mention that TIP is not a complainant, it acts as a whistleblower and operate under Article 10-A of the constitution of Pakistan which gives the right to public to know how government is being run by public officers. Article 19-A makes right to access of information pertaining to a public authority, a fundamental right.
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