ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has opposed a proposal of granting flare gas based CNG licenses. In a letter sent to the Petroleum Division on December 30, the regulator suggested that permission to grant flare gas based CNG stations would be a threat to public life and safety.
The Petroleum Division prepared a summary to table before the Economic Coordination Committee (ECC) seeking permission to grant CNG licenses on flare gas. The regulator officials said that the Ogra as has already conveyed the legal and factual position to the Ministry of Energy (Petroleum Division), which is reflected in para 4 of the draft summary. Transportation of flare gas through bowsers and its compression at the oil and gas field is not covered under the CNG Rules, 1992.
The Flare Gas (FG) Utilization Guidelines 2016 no-where mandates or necessitates the supply of flare gas to the CNG station only.
Para 3 of the draft summary is self-contradictory as it proposes flare gas be best utilised in transport sector from gas reserves located remotely, while at the same time, declares that industrial bases are not situated in close proximity of gas reserves, and hence, such gas may not be supplied to the industrial units.
The regulator said that the FUGPA, a body of CNG stations based on flare gas, is not a registered body.
Para 6 (ii) of the draft proposals is contrary to the law and the CNG Rules provisions.
Moreover, the regulator said that there are no regulatory requirements for sale of flare gas as CNG, a fact already conveyed to the Ministry of Energy (Petroleum Division), hence it cannot be used/allowed in CNG sector.
Flare gas is off spec gas and there is no mechanism available either at well-head/field or at the CNG station to bring it on specifications.
Flare Gas licensees namely i.e. M/S Hi-Tech and M/S E-Gas (Pvt) Ltd have been found supplying off spec gas and has been stopped to supply such Flare Gas.
This fact supported the apprehension that specifications of such flare gas varies drastically and cannot thus, be checked and ensured at all times.
No mechanism is available for Gas Sweetening and Dehydration just the downstream of field at the flare gas installations.
No mechanism is available at the flare gas installations or at the site of CNG station(s), which would ensure round the clock collection of data related to composition of the gas, as in case of pipeline gas suppliers i.e. SSGCL and SNGPL. Off spec Flare Gas to CNG stations would mean compromising the integrity of CNG equipment at CNG stations as well as in CNG converted automobiles/cylinders, endangering the life and property of the general public.
Supply of such gas may result in weakening of the CNG cylinders installed at the CNG stations and at the vehicles and may result into accidents.
Supply of off-spec gas to CNG vehicle owners would result in serious safety repercussions beyond imagination and control.
No experiment in such matter is affordable vis public safety as well as the un-lawful behaviour/attitude of the flare gas licensees observed so far as they are still supplying such gas to the CNG stations.
In light of the above, the Ogra as a regulator does not support the use of flare gas in CNG/transport sector, flare gas being of inconsistent quality, techno-legal constraints as already highlighted and a serious threat to public life and safety. Hence, the contents of the draft summary are not supported.
Copyright Business Recorder, 2021
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