LNG transmission: Ogra criticised for 'bulldozing' third-party access rules

The Oil and Gas Regulatory Authority (Ogra) has come under fire for attempting to bulldoze third-party access rules for LNG transmission through the Sui utility grid to favour one private sector party. After the demise of Sui Southern Gas Company's 'Mashal LNG' project, there are three private sector parties which are developing LNG import projects for Pakistan.
These are: Pakistan GasPort Limited (PGP), which is being funded by US government through Overseas Private Investment Corporation (OPIC); Engro, one of the country's largest business groups; and the little-known party called Global Energy. Despite being a late entrant and having no experience in LNG, Global Energy is viewed by Ministry and industry sources as the favoured party. The permissions and licences, that had taken PGP and Engro years to receive, have been issued by Ogra to Global Energy in a matter of months.
In order to transport re-gasified LNG, developers have to pay to use the natural gas pipeline system of SSGC and SNGPL in accordance with the LNG Policy 2006. The surplus capacity available in the system is 500 mmscfd. On October 14, Ogra issued a letter to the Ministry, the SSGC, the SNGPL, PGP, Engro, Global Energy, Shell Pakistan, 4Gas Asia and DSME informing them that the draft LNG Regulated Third-Party Access Rules had been modified by an expert and that all stakeholders, were until the following morning to respond to the same. To indicate the finality of the latest revision of the TPA Rules, the Ogra also informed the parties that it would be holding a meeting on October 17. The PGP has protested against Ogra's "unholy haste and non-transparency."
The PGP's letter states: "We refer to your letter No Ogra-9(213)/2011 dated October 14, 2011, which was received by us at 4:41 pm the same evening, requiring us to submit our response before noon on October 15, a day on which the Authority does not work. This is the third draft of the Third-Party Access (TPA) Rules that has been circulated by the Authority." The letter was issued by Anees Ansari, Director, Pakistan Gasport Limited to the Chairman of Ogra.
The PGP has asked Ogra to give all stakeholders at least seven business days, and not merely a few hours, to respond to the latest, third draft of the TPA Rules. It has also asked Ogra to reschedule its meeting called for October 17. "PGP takes strong issue with the Authority's palpably discriminatory, arbitrary, and non-transparent decision-making that threatens to seriously undermine both investor confidence and the faith of international lenders in nationally-important energy sector projects for Pakistan. The Authority must exercise prudence. No meaningful response can be provided to the Authority at such short notice, given the changes that have been introduced in the latest 25-page TPA Rules draft," said the PGP letter to Ogra.
The PGP letter said: "TPA Rules have to be transparent, fair, competitive, and they must provide a level-playing field to all serious LNG developers. The Authority's unholy haste and lack of transparency in attempting to steamroll TPA Rules allegedly customised for a select party will only give rise to controversy and stunt development of the LNG sector."
Ogra as the regulatory body falls in the jurisdiction of Cabinet Division. The Authority has been severely criticised for some of its controversial decisions including grant of licences to CNG stations during complete ban. Its Chairman Tauqir Sadiq, a close relative of Senator Jahangir Badar, has been sent on forced leave.