Pakistan scraps tender for LNG terminal

Sui Southern Gas Company (SSGC), the distributor of natural gas in the southern part of Pakistan, which is majority government-owned, scrapped last week the tender process for the second liquefied natural gas (LNG) tolling terminal after the lowest bidder, Akbar Associates, was found to have submitted fake bank documents.

Eight board members voted in favour of cancelling the tender and all government nominees supported the Ministry of Petroleum’s stance on the issue.

However, non-government board members voted against cancellation of the bids.

SSGC Board Chairman Miftah Ismail acknowledged that the tender had been scrapped to avoid litigation and that the tender will be floated soon. According to sources, reviewing bids was responsibility of AF Capital, the advisors to the government in the project.

Under the terms and conditions of the tender and the Public Procurement Regulatory Authority (PPRA) rules, SSGC was then required to award the contract to the second lowest bidder, Pakistan Gasport Limited (PGPL). However, SSGC alledged that it was of vital national importance and could not be delayed or cancelled as it could have serious financial implications for both the federal and Punjab governments

Bids for the second LNG terminal were submitted on January 27. Only two parties, Akbar Associates and PGPL, qualified for the project and their financial bids were opened on May 8.