ISLAMABAD: Caretaker Prime Minister Anwar ul Haq Kakar has taken notice on the complaint of Transparency International Pakistan (TIP) regarding unauthorized third-party gas sale by Konnect Gas (Private) Limited to the Compressed Natural Gas (CNG) stations.
Prime Minister has taken notice of the complaint of TIP on the violation of Pakistan Petroleum Rules (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 and PM’s Office on 16-10-2023 has directed the Petroleum Division to furnish comments regarding TIP complaint at the earliest.
It is relevant to note here that 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.
Earlier, Petroleum Division’s Director General Petroleum Concessions (DGPC), in a notice under Rule 68 (a) of Petroleum (Exploration and Production) Rules 1986 for illegal sale of natural gas by M/s Spud Energy Pty Ltd. from the Sara and Suri D&PLS to the unlicensed entity M/s Konnect Gas Pvt. Ltd dated 13th October 2023 to Chief Executive Officer (CEO), Spud Energy Pty Limited, has asked to explain within 60 days from the issuance of this notice to remedy the breach, or where the breach is not capable of being remedies, offer reasonable compensation within 60 days. If spud energy fails to satisfy the Authority within 60 days, the office of SGPC will initiate action against the company in accordance with applicable PCA/Rules, said a notice of DGPC to Chief Executive Officer (CEO), Spud Energy Pty Ltd.
The DGPC, in its notice, said that House of Magna Cum Laude (HoMCL) has written a letter to OGRA on 18/08/2023 inquiring about the OGRA license of M/s Konnect Gas Pvt. Ltd (KGPL) to undertake the regulated activity of gas sale. And, OGRA vide its letter No. OGRA-6(1)-KGL/2019 dated 08/09/2023 responded to HoMCL intimating that M/s KGPL failed to secure a license under the NGRA Rules, 2000 and stated that M/s KGPL is not a licensee of OGRA to undertake the regulated activities.
According to DGPC notice to CEO of SEPL, HoMCL filed a complaint against M/s SEPL and M/s KGPL on 12/09/2023 with the office of DGPC, requesting to inquire into the matter of the illegal sale of natural gas by M/s SEPL to M/s KGPL.
HoMCL submitted further grievances in continuation of its complaint vide its letter dated 21/09/2023 to the office of DGPC. Wherein, it was intimated that M/s Konnect Gas is not a licensee of OGRA, that M/s Spud Energy has been illegally selling unprocessed gas to M/s Konnect Gas since year 2020, and that M/s Konnect Gas is further selling the unprocessed gas to CNG stations/end consumers, posing direct threat to the lives of the people.
HoMCL, in another letter dated 26/09/2023 to OGRA, intimated that the unprocessed gas is being sold by M/s Konnect Gas to CNG stations in Sukkur (Sindh).
It is also learnt from DGPC notice to CEO, SEPL that Transparency International filed a complaint against M/s Spud Energy and M/s Konnect Gas on illegal sale of natural gas on 02/10/2023 to the office of DGPC. Wherein, it was intimated that M/s Spud Energy has been selling unprocessed gas to M/s Konnect Gas, and that M/s Konnect Gas is selling unprocessed gas to CNG stations/end-consumers, posing direct threat to the lives of the citizens.
The DGPC notice further discloses that OGRA had written a letter to M/s Spud Energy on 06/10/2023 and intimated that M/s Konnect Gas is not a licensee of OGRA to undertake any regulated activity and that M/s Spud Energy is required to furnish comments within 14 days.
It is worth mentioning here that M/s Spud Energy (SEPL) is 60 percent working interest owner and operator in the Sara & Suri Development and Production Leases.
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Reports have surfaced alleging that Konnect Gas has been involved in unauthorized gas sales through third-party vendors, bypassing regulatory oversight and potentially compromising the integrity of the gas distribution network.