Business

Akbar Associates wins bid for second LNG terminal

Offers a tariff of 49.87 cents per mmbtu, will build the facility in 2 years.

Our Correspondent May 08, 2015

Together, the two terminals will bridge the natural gas demand-supply gap by 53% in the summer season and 36% in winter. PHOTO: AFP

ISLAMABAD: Akbar Associates has won the bid for constructing the second liquefied natural gas (LNG) terminal in the country by offering the lowest tariff.

The board of Sui Southern Gas Company (SSGC) made the decision in a meeting held on Friday, say officials. The company will award the contract after finalising the arrangements in the next 10 days.

A day ago, SSGC had shortlisted two bidders – Pakistan Gas Port Limited and Akbar Associates – for building the second terminal for handling LNG imports.

In the technical evaluation, Pakistan Gas Port and Gunvor had got a score of 89.3 from SSGC consultant AF Capital whereas Akbar Associates received 74.73 marks. Both bidders were declared technically qualified and entered the final round.

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 receive at least 70 marks.

According to officials, in the financial bids opened on Friday, Akbar Associates offered a tariff of 49.87 cents per million British thermal units (mmbtu) whereas Pakistan Gas Port quoted 52.9 cents.

The tariff quoted by Akbar Associates is far lower than the tariff approved by the government for the first LNG terminal. The levelised tariff for ETPL’s terminal is 66 cents per mmbtu.

The successful bidder will be required to complete work on the project in 24 months and make a capacity of 400 million cubic feet of LNG per day (mmcfd) available to SSGC.

Like ETPL, Pakistan Gas Port had proposed to establish a floating storage and re-gasification unit-based project whereas Akbar Associates sought to set up a land-based terminal. Together, the two terminals will bridge the natural gas demand-supply gap by 53% in the summer season and 36% in winter.

Apart from these, the federal government is planning to start the process of setting up a land-based LNG import terminal at Gwadar with Chinese assistance.

Published in The Express Tribune, May 9^th, 2015.

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COMMENTS (5)

Syed ammar Shah | 8 years ago | Reply Gents et all Vikraul and Woody Engro did make history Engro spent over USD 150 Million to make a new Terminal. Please visit the project site and Port Qasim to see the quantum of work done in under 10 months. Engro Dredged over a Million CUM, installed offshore piles of more than 2 inch dias, 30m in lenght and 200 in Qty, installed a 24 km 42 inch High pressure Piping network, prepared a custody transfer station including provision for GOP future terminals, and then leased a ship. FYI, a leased LNG vessel costs between USD 160k and USD 200k per day depending on specifications or something in that region as a rule of thumb so Engro has taken the risk of working with a very volatile Government in Pakistan and invested and then beat the timeline and avoided hefty penalties of USD 300k per day in case of delay The project today is bigger than the largest gas field of pakistan and in a terrorist prone country, Engro has managed to bring in an FSRU, is a landmark for the country from security perspective as well. Pitty people do not understand the efforts Engro and the GOP has made to make this possible. FYI LNG import has been on the desk since 2005, tenders scrapped 5 times and finally PMLN has made it possible. If any one else can do it then please do it and then write something. Engineer, procure and construct it in under 10 months and then celebrate! Cheers

Cartoon | 8 years ago | Reply @woody: If it is so easy why didn't you do it.