Ministry of Petroleum and Natural Resources takes strong exception to allegations levelled against it in importing Liquefied Natural Gas

Islamabad, July 14, 2012 (PPI-OT): A Spokesman of the Ministry of Petroleum and Natural Resources (MPNR) has taken strong exception to allegations leveled against it in its plans of importing Liquefied Natural Gas (LNG). The allegations are baseless, unfounded and malicious.

The country is faced a with serious energy crisis which includes over 2 bcfd gas demand supply imbalance, adversely impacting on the economic growth of the country. The Federal Government is pursuing import of gas through transnational pipelines as well as import of LPG and LNG to abridge the demand supply gap.

The recent efforts of importing LNG under third party access regime have been delayed for a number of reasons including circular debt and need for sovereign guarantee for which efforts are underway to remove the difficulties faced in furthering the process.

However, in view of pressing emergency to meet the short term energy requirements of the country, MPNR has initiated new proposals of importing LNG under integrated project structure through international transparent competitive bidding besides direct negotiations with Qatar, Algeria and other governments.

MPNR in is an interactive consultative process with all stakeholders including relevant Federal Ministries as well as Oil and Gas Regulatory Authority (OGRA). This matter is being considered and deliberated in an ECC committee and its recommendations will soon be finalized.

MPNR also rejects the allegations of procuring LNG at inflated rates which is nothing but a fig of imagination of the so-called Pakistan Economic Watch, which has made irresponsible allegations without any bases.

It is clarified that MPNR is still working on several proposals for import of LNG under alternative structures and modalities which will be finalized in consultation with all stakeholders and procurement will be undertaken through a transparent and competitive process of international bidding. Wherever required, services of reputable international consultants will also be utilized for obtaining the best results for the government.

Furthermore, the question of relaxing the rules and regulations does not arise at this stage where the projects parameters have not even been finalized. MPNR categorically rejects any such accusations and assures all concerned that full compliance to the applicable rules, policy and other government directions will be observed in entire LNG procurements process.

While expressing its grave concern on propounding and publishing such baseless and malicious allegations on a project of national importance, the MPNR reserves the right to take legal action both against the agency responsible for circulating such reports and against Mr. Abdullah Tariq of Pakistan Economic Watch (PEW) for leveling such allegations.

For more information, contact:
Ministry for Petroleum and Natural Resources
Tel: +9251 921 0220 -9206416
Fax: +9251 921 3180