Pakistan LNG Project May Require Re-tendering

The Sui Southern Gas Company’s $25 billion LNG import project may require re-tendering as two of the three bidders have become “controversial”, Pakistani daily The Dawn has reported.

“SSGC would be required to reject all bids as per Rule 33 of the Public Procurement Rules 2004 and re-invite tenders for bidding under Rule 34 to ensure transparency through competitive bidding as bids submitted by the PGPL Consortium and the GEI appear to be challengeable owing to flaws in their bids,” the newspaper said citing an official.

If the government gives contract through single bid to the ETPL, the third bidder, it will be challengeable under PPRA rules due to lack of competition, the official added. The integrated Liquefied Natural Gas (LNG) import project is designed to bring 400mmcfd gas in the country for 15 years and the price of gas would be reviewed after every five years.

The bids were opened on Jan 9 despite request from some international parties to extend bidding date due to Christmas and New Year holidays in the West.

All the bids are currently under technical evaluation by international consultants hired by the SSGC.