ETPL, SSGC deny violation of PPRA rules

Clarifies initial tender for 400 mmcfd of gas provided for levellised tariff of $0.66 per mmbtu

Elengy Terminal Pakistan Limited (ETPL), while responding to a news story titled “Engro terminal to handle additional 200 mmcfd of LNG” published in The Express Tribune, has denied that under-utilisation of the terminal capacity had resulted in higher charges at $1.45 per mmbtu.

It clarified that the initial tender for 400 mmcfd of gas provided for a levellised tariff of $0.66 per mmbtu. After recent amendment in the LNG supply agreement, the tolling fee for the additional 200 mmcfd will be $0.1745 per mmbtu, which will bring down the overall charges for 600 mmcfd to $0.4799 per unit.



Furthermore, ETPL denied any violation of PPRA rules, saying it was the only entity at that time running a fully operational LNG terminal in the country and no other parties participated in the bidding process. Separately, Sui Southern Gas Company (SSGC) rejected the idea that SSGC and ETPL had inked an agreement for utilising the additional re-gasification capacity of 200 mmcfd without going into the bidding process.

SSGC said in accordance with government directives it had sought advice from a leading law firm well versed with the Public Procurement Rules 2004. Based on the law firm’s opinion, SSGC invoked Rule 42 (d) (ii) “Negotiated Tendering” to maintain transparency in the procurement process.

Later, SSGC sought a tender enquiry from ETPL, which was the only LNG terminal operator at the time, through negotiated tendering. For the sake of transparency, it said, the tender enquiry was also published in leading newspapers and posted on PPRA and SSGC websites.

Published in The Express Tribune, December 13^th, 2017.

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