The Supreme Court issued a stay order for the $26 billion Liquefied Natural Gas (LNG) export contract. PHOTO: FILE
A three-member bench headed by the Chief Justice (CJ) of Pakistan Iftikhar Muhammad Chaudhry issued the stay order during the hearing of the case on March 11.
The CJ took notice of a press clipping and the note of registrar containing the details regarding the LNG contract on March 10.
According to the registrar’s notice:
“Ministry of Petroleum and SSGCL had not followed the process for awarding contract for LNG supply by Marshal or Short Term Project seriously and with high order of transparency as it is evident from the facts and circumstances narrated above.”
It further stated:
“Here we may observe that it is duty of the Court to ensure that the Public Procurement Regulatory Authority Ordinance (PPRAO), 2002 read with the Public Procurement Rules, 2004 are adhered to strictly to exhibit transparency.”
A press release issued from the Supreme Court issued notices to secretaries of the Ministry of Petroleum, Finance and Economic Affairs, MDs of PEPRA, Chairman SSGC, both incumbent and former, including Waqar A Malik who had reportedly resigned.
After the suo motu notice the Economic Coordination Committee (ECC) rejected the contract for import of 400 million cubic feet of (LNG) and left the matter to the Federal Cabinet.
An immediate meeting of the Federal Cabinet was likely to be convened early next week to resolve the controversy after some members of the ECC questioned the summary submitted by the Petroleum Ministry to declare Pakistan Gasport consortium as lowest bidder.
“Why was GasPort Company included despite delay? And who are the owners of this company?” Justice Gulzar questioned during the March 11 hearing.
The lawyer for petroleum ministry answered that Iqbal Zaid Ahmed is one of the owners of Gas Port Company.
Lawyer Anwar Mansoor said that the cabinet should not be disrespected and the Chief Justice agreed and said that the Cabinet shouldn't face the dilemma to make a decision regarding the contract.
The hearing was adjourned till March 18.
Correction: An earlier version of the story incorrectly stated that the contract was for $26 billion.
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@Usman Syed:
Very correct observation! Perhaps, it is a mix-up in the name Gas-Port, the Company awarded the contract for supplying 400 MMCFT of LNG to Pakistan. It is interesting that the volume has been mentioned but no time duration during which it would be supplied. Is it daily, annual or for the entire 15 years period of contract? Even, the quantity has carelessly been mentioned in Million Cubic Feet, while the usual unit is Million-Million Cubic Feet abbreviated as MMCFT.
The headline is wrong. The news item clearly says that the contract was awarded to import LNG, and not export it. Pakistan's energy crisis does not allow it to export anything related to gas or petroleum.
I wonder when the SC is going to take notice of the IP - no open bids on that deal and even the price seems to fluctuate between $7.5 and $1.5 Billion depending on which article you read.