ISLAMABAD: Ostensibly owing to quality and safety constraints, Oil and Gas Regulatory Authority (OGRA) has now restrained all the Compressed Natural Gas (CNG) stations from the sale of flare gas.
OGRA, in a letter dated 19th October, 2023 to the Managing Directors/Chief Executive Officers of 39 major companies associated with the business of gas, has advised them all to ensure that their dealers must abstain from selling/use of flare gas at their stations in order to ensure public safety at large.
According to OGRA, its enforcement teams have observed illegal sale of flare gas at CNG stations associated with retail outlets of certain Oil Marketing Companies (OMCs) which may have resulted into a severe safety hazard.
In this regard, OGRA has restrained all CNG stations from the use of flare gas at their fuel stations due to quality and safety constraints, said the OGRA letter titled Use of Flare Gas at CNG Stations Associated with Retail Outlets.
It is also learnt from OGRA’s letter that all CNG stations owners were already directed through public notices to refrain from selling of flare gas, and to avoid any such modifications/alteration of works at their CNG stations, failing which the OGRA shall initiate strict action against them as per applicable laws/rules inter-alia including revocation of CNG license.
It is relevant to note that an unlicensed Konnect Gas had allegedly been involved in the illegal sale of unprocessed gas to the Compressed Natural Gas (CNG) stations since 2020 and caretaker Prime Minister Anwaarul Haq Kakar took 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. And, Prime Minister’s Office, in a most immediate letter to Secretary Petroleum Division on 16th October, 2023, had directed to furnish comments regarding a complaint filed by the Transparency International Pakistan (TIP) regarding unauthorized third-party gas sale by Konnect Gas (Private) Limited to the Compressed Natural Gas (CNG) stations.
It is pertinent to mention 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.
Gas flaring is the burning of the natural gas associated with oil extraction. The practice has persisted since the beginning of oil production over 160 years ago. The flares are the giant flames often seen coming out of smokestacks on oil installations.
At oil and gas extraction sites, gas flares are similarly used for a variety of startup, maintenance, testing, safety, and emergency purposes.In a practice known as production flaring, they may also be used to dispose of large amounts of unwanted associated petroleum gas, possibly throughout the life of an oil well.
According to the International Energy Agency IEA), around 140 bcm (Billion Cubic Meters) of natural gas is flared globally each year. This is a major source of CO2 emissions, methane and black soot, and is damaging to health.
