By SKM
June 29, 2025
ISLAMABAD: Following the stern notice and an inquiry initiated by Federal Minister for Petroleum and Natural Resources Mr Ali Pervaiz Malik into the creation of a subsidiary by loss-making SNGPL without a nod of the government, the Petroleum Division has directed all 11 State Owned Enterprises (SOEs) being run under the ministry to provide the comprehensive response to 6 questions.
The letter from the Petroleum Division dispatched on June 28, 2025 to Acting Managing Director SSGCL, MD, SNGPL, MD PSOCL, MD PARCO, MD GHPL, CEO PLL, MD ISGSL, MD OGDCL, CEO, PMDCPD, MD, SML, and MD & CEO, PPL seeking detailed response of the 6 questions by today (Monday) which include i) How many subsidiaries SOE have and share date of incorporation of each Subsidiary?; ii) What approval process was followed to incorporate these subsidiaries? Who approved articles of incorporation/Directors for subsidiary companies?; iii) Are Directors of subsidiaries entitled to any remuneration / meeting fees? What are remuneration / meeting fees for all Directors/Chairman of each SOE & subsidiary company? iv. Who monitors the performance of these subsidiaries?; v). List of SOEs/subsidiaries with days payable in excess of 90 days at 31/3/2025 and yet paid out dividends?; vi) Apportionment of circular-debt liquidation money received from Power Division?
The SOEs have also been asked to provide, in addition to hard copy, a soft copy of the comprehensive response in Power Point format via email at sectionofficergas@gmail.com by Monday (30 June, 2025) before official closing hours.
Since Sui Northern Gas Pipelines Limited (SNGPL) cannot form a subsidiary without government approval, an inquiry will be launched into the matter, Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik stated this while talking to The News on June 27, 2025.
The state-owned SNGPL on June 26, 2025 created a subsidiary to be used as a third party for getting gas from Exploration and Production (E&P) companies under the amended Exploration & Production Policy 2012.
Under the amended E&P policy approved by ECNEC, E&P companies were allowed to sell 35 percent gas from new gas discoveries to third party — private sector companies — at the auctioned prices after getting bids, and 65 percent gas will be allocated to the Sui companies at existing well-head gas prices.
The minister also raised eyebrows at another subsidiary — Alternate Energy Pvt Limited of Sui Southern. Alternate Energy Pvt Limited also gave an advertisement in the national newspapers seeking bids for LNG and natural gas. Officials said the question arises as to how a gas transmission and distribution company can give an ad for selling natural gas. It is not an E&P company which can seek bids for auctioned price under amended E&P policy. “This is all being done to discourage the private sector.”
The E&P companies — OGDCL, Mari Energy, Pakistan Petroleum Limited, Pakistan Oil Field Limited, MOL, GHPL in a meeting with Prime Minister Shehbaz Sharif had pledged that they were ready to invest $5 billion for exploration and production activities but they had linked their investment with the approval of the amended E&P policy. “The amended E&P policy is now in place, but in a strange move, SNGPL has created a company to purchase the gas at auctioned price and sell it like private sector companies,” the officials said.
The Board of Directors of SNGPL on June 26 approved the creation of a subsidiary with a paid-up capital of Rs1 billion, and to this effect, SNGPL has informed Pakistan Stock Exchange as a material information. “How a loss-making entity which is needed to pay Rs1500 billion dues to E&P companies can make a new subsidiary with new MD and Board of Directors creating a new head and that too without getting a nod of the federal government,” officials posed a question. Ends
