The Cabinet Division which deals with administration affairs of Ogra, informed the CCoE on January 8, 2019 that the matter is under consideration in consultation with concerned ministries/divisions as well as other stakeholders, provincial governments and LNG companies. The CCoE was further informed that after completion of consultation process, necessary legislation will be carried out.
A couple of months ago during the first meeting of CCoE, Minister for Law and Justice Barrister Dr Farogh Naseem rejected the existing definition of LNG, announcing to define LNG afresh.
The sources said the Petroleum Division has informed the CCoE that CCI in its meeting held on November 24, 2017 advised the provincial governments to convey their concerns on the import of LNG/RLNG policy 2011 for submission of the consolidated report to the CCI.
According to sources, it was also advised that Petroleum Division will respond to the concerns of the provinces. The matter was further discussed in the CCI meeting held on February 26, 2018 wherein the CCI reviewed the progress of the decision taken in the last meeting and directed the provinces to report their concerns.
It was also decided if response of a province is not received with 45 days, it will be deemed that the respective province has no objection to the proposal.
Minister for Law and Justice, Dr Farogh Naseem stated that as per article 154(1), the council shall formulate and regulate policies in relation to matters in Part-II of the Federal Legislative List and shall exercise supervision and control over related institutions. Mineral oil and natural gas at entry No. 2 of FLL (Part-II) makes it a federal subject, whereas, entry 27 pertains to import and export across customs frontiers which is in the domain of the federal government.
Petroleum Division was of the view that in strict technical sense of the existing law, the LNG is a natural gas whether locally produced or imported. The argument that its well-head is situated outside the territorial boundaries of Pakistan is not tenable.
The minister for law did not agree to the opinion of Petroleum Division given earlier and indicated that he would review the opinion.
Ministry of Energy (Petroleum Division) has already assured the governments of KPK and Sindh that their concerns will be taken care of. Petroleum Division has also assured the provincial governments that the federal government will abide by the constitutional provisions pertaining to oil and gas in letter and spirit especially Articles 154, 158 and 172. The minister for petroleum has already held meetings with chief ministers of Sindh and Balochistan in this regard whereas he is expected to meet with chief minister KPK soon.
