OGRA Warned on Sui Gas Insider Appointments

A former member of the Oil and Gas Regulatory Authority (OGRA) has cautioned that selecting a nominee from Sui Southern Gas Company Limited (SSGCL) or Sui Northern Gas Pipelines Limited (SNGPL) as Member (Gas) may contravene the OGRA Ordinance, 2002, absent explicit parliamentary approval.

In a formal letter to OGRA Chairman Mansoor Muzaffar Ali, the ex-member invoked Section 5(2) of the Ordinance, which prohibits appointments of individuals harboring direct or indirect financial interests or affiliations that could spawn a conflict of interest in regulatory roles. Ali asserted that applicants from the duo of state-owned gas utilities—both under OGRA’s oversight—inherently trigger this prohibition.

Reports suggest three candidates are vying for the vacant post: Kabeer Ahmed, Senior General Manager (Transmission) at SNGPL; Saleem Ullah from SSGCL; and Shehzad Iqbal, a former Senior Executive Director (Gas) at OGRA. The position has languished unfilled since November 2022, stalling vital regulatory decisions, particularly in gas distribution.

The Member (Gas) role governs transmission, pricing, and distribution—domains overwhelmingly controlled by SSGCL and SNGPL. Detractors alert that installing insiders risks compromising OGRA’s neutrality, provoking legal challenges, and shattering public trust in the regulator’s independence.

OGRA, instituted via the 2002 Ordinance, oversees Pakistan’s oil and gas sector, encompassing pricing, licensing, and service standards, impacting millions of consumers and the finances of state-owned utilities. Amid escalating gas demand, dwindling reserves, LNG import hurdles, and circular debt strains, upholding regulatory independence is deemed crucial.

Ali’s admonition amplifies the imperative for parliamentary oversight, positing that such endorsement would fortify legitimacy and shield OGRA from bias allegations, whereas circumventing it might fuel doubts over governance and transparency. Analysts contend the selection will establish a benchmark for harmonizing technical expertise with impartial oversight in Pakistan’s energy sector.