Business

LNG imports: SSGC shortlists bidders for second terminal

Engro’s Elengy Terminal fails to qualify.

Our Correspondent May 07, 2015

400 mmcfd, is the expected capacity of the new terminal that the successful bidder will be required to commission within 24 months. PHOTO: REUTERS

ISLAMABAD: Sui Southern Gas Company (SSGC) on Thursday shortlisted two bidders for building the second liquefied natural gas (LNG) import terminal in the country, sources in the petroleum ministry told The Express Tribune.

According to the evaluation criteria, Pakistan Gas Port Limited (PGPL) and Gunvor obtained a score of 89.3 from SSGC consultant AF Capital, while Akbar Associates got a score of 74.73.

Both bidders have been declared technically qualified and have entered the final round of bidding.

Engro’s Elengy Terminal Pakistan Limited (ETPL), which built the country’s first LNG terminal in March, got a score of 61.9 and did not qualify as bidders were required to hit at least the 70 mark in order to qualify.

According to sources, the SSGC board approved the recommendations of AF Capital in its meeting held on Wednesday in Islamabad.

SSGC has asked PGPL and Akbar Associates to send their representatives to the public opening of their financial offers in Islamabad on Friday. The project will be awarded to the bidder offering the lowest tariff. PGPL, Akbar Associates and ETPL had submitted bids on January 27. The tariff for ETPL’s LNG terminal is 66 cents per million British thermal units (mmbtu).

The successful bidder will be required to start the project in 24 months and make 400 million cubic feet per day (mmcfd) capacity available to SSGC.

Like ETPL, PGPL has proposed that it will establish a floating storage regasification unit-based project while Akbar Associates is seeking to set up a land-based terminal.

The ETPL terminal and the new terminal will together reduce natural gas deficit in the country by 53% during the summer season and 36% during the winter season. In addition to these, the federal government plans to start the process of setting up a land-based LNG import terminal at Gwadar with Chinese assistance.

Published in The Express Tribune, May 8^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS (2)

woody | 8 years ago | Reply Why do you need a second terminal - your first terminal is floating in the harbor barely used. If you actually need a legitimate LNG terminal then I suggest you hire a foreign firm which has experience in building those terminals - why hire local guys who don't know what they are doing. As I recall your currentLNG terminal is nothing other than a foreign floating ship which was leased by Engro - something the govt could have done with a phone call.

woody | 8 years ago | Reply Why do you need a second terminal - your first terminal is floating in the harbor barely used. If you actually need a legitimate LNG terminal then I suggest you hire a foreign firm which has experience in building those terminals - why hire local guys who don't know what they are doing. I should remind you that your first LNG terminal is nothing other than a foreign floating ship which was leased by Engro - something the govt could have done with a phone call.

Replying to X