Discovered gas field awaits PM's nod

ISLAMABAD At a time when country is facing severe energy crisis, Prime Minister Syed Yousuf Raza Gilani has unnecessarily delayed gas extraction from a discovered gas field Kunar Pesakhi, located some 25 kilometres east of Hyderabad.
Arshad Nasr, former MD of OGDCL, was not in favour of delaying the installation of gas extraction equipment at the gas field and wanted to start work in July 2008 but he was forced to delay the project. On his resentment, the project was postponed after a letter from PM Secretariat was received and he was replaced.
Kunar Pesakhi is a gas field that can feed the major part of entire private industry and may also be helpful in overcoming power crisis in the country. The said plant is able to produce 280 million cubic feet of gas daily, TheNation reliably learnt.
This field also can produce 1000 MW of electricity or feed almost the entire industrial sector that currently is at the mercy of gas loadshedding causing loss of exports and unemployment. Commencement of gas production from KPD field will also reduce oil imports.
Reliable sources informed TheNation that tenders were invited in 2008 for the installation of equipment on the gas field to extract gas and LPG, and two days earlier to the date of tender opening or presentation, the authorities of OGDCL postponed the tenders and till now the situation is same.
The tenders were allegedly stopped due to vested interests of some strong lobby in LPG business because the authorities wanted to give the contract to their blue-eyed or to a party that could make them happy.
Preparation of installing facilities for commencing production from this field was stopped after an anonymous letter was received in 2008 from one Muhammad Ramzan at the behest of a powerful LPG lobby. This lobby is so strong that no further work has been done to produce any gas from this major gas field.
OGDCL had advertised tenders for its Kunnar Pesakhi Deep Project which also had potential of 300 tonne additional LPG per day (20 percent of Pakistans total LPG production). The bids were due on Monday July 07, 2008.
Accordingly to a well-placed source in OGDCL, Arshad Nasr, the then MD OGDCL, received phone call at his house on Saturday July 05, 2008 evening with the order to cancel the bid opening.
He called an emergency meeting of OGDCLs concerned general managers on Sunday, July 06, 2008, and then an email was issued at 12:00 p.m. after this meeting to all bidders advising them of two weeks postponement.
What transpired here was interesting that 300 tonne LPG per day was just too lucrative for the influential LPG lobby for letting it stay with OGDCL and this lobby wanted LPG part of the plant to be handed to private sector.
Nasr was not in favour of delaying the project but an anonymous letter written by one Muhammad Ramzan moved the whole government machinery to stop the project bid.
Muhammad Ramzans letter accompanied by a letter from GA Sabri of Ministry of Petroleum reached OGDCL MD on the very Sunday as Mr. Sabris letter was dated Sunday July 06, 2008. Arshad Nasr replied to Secretary Petroleum on Monday July 07, 2008.
His reply stated: OGDCL, pursuant to Ministry of Petroleum and Natural Resources advice, has put the opening of bids for the abovementioned fast track project on hold for two weeks. Bids were to be opened today, July 07, 2008. You will kindly appreciate, that this postponement will delay the scheduled completion date of this project of the greatest national importance which is being developed on a fast track basis.
It is indeed unfortunate and regrettable that a project of such great national importance should be delayed and adversely affected on the basis of a letter that barely disguises the writers real motives which pivots around vested LPG extraction interests and does not disclose even his contact information.
A new chain of power play events started. Arshad Nasr got terminated. It is learnt that a certain VVIP had asked Nasr to extend the deadline for opening of bids for a multimillion dollars project but Nasr denied and said, I dont take verbal orders, give it to me in writing.
According to well-placed sources, Nasr stood his ground. Two hours later, a letter from PM Secretariat ordered OGDCL to extend the deadline for opening of bids and sacked Nasr.
After a few postponements, bidding was formally indefinitely postponed as a shareholder of OGDCL filed petition in Supreme Court against outsourcing of LPG extraction from the said field.
But it is pertinent to mention here that OGDCL sources have confirmed if OGDCL extracts LPG itself and not outsource to private sector, there is no court stay order stopping OGDCL to proceed with gas production from this field.
In a Supreme Court hearing recently, Chief Justice Iftikhar Muhammad Chaudhry has given remarks if the government takes steps against the people having monopoly on LPG business, court would be happy and yet the government seems unmoved.