Retender proposed: LNG contract cannot go to lone bidder, says TIP

SSGC advised to invite tenders from five LNG terminal licence holders.

Our Correspondent July 29, 2013
SSGC advised to invite tenders from five LNG terminal licence holders. PHOTO: FILE

KARACHI: Transparency International Pakistan (TIP) has asked the Sui Southern Gas Company (SSGC) to call fresh tenders for the Liquefied Natural Gas (LNG) supply as only one bidder has been technically qualified by the consultants.

In a letter to the SSGC Managing Director Zuhair Siddiqui TIP said that according to Public Procurement Regulatory Authority (PPRA) rules this procurement for LNG cannot proceed for want of competition.

This is due to the fact that the price for LNG quoted by this single bidder cannot be compared with current market prices as no prices are available for similar procurements in the current financial year.

As the delay in LNG import has been going on since 2005, due to one reason or other, TIP proposes SSGC to invite tenders from the five LNG terminal licence holders, as well as from all parties and joint ventures who are interested and can provide proof of having at least one LNG terminal.

TIP suggested issuing 15 days tender notice on Monday with tolling rate per mmbtu (million British Thermal Units) as the only evaluation criteria. There shall be only two parts of tolling rates, capacity charge and variable charge and the lowest offered bid will be accepted, TIP proposed.

Published in The Express Tribune, July 29th, 2013.