LAHORE: The Petroleum Ministry plans to complete the bidding process for the procurement of liquefied natural gas (LNG) by Sept 15 in a bid to receive first consignment by the end of December this year or so.

The ministry has already invited the local and international firms of good repute to submit expression of interests (EoIs) amid suitable LNG price/bids by July 15.

Top authorities of the ministry say since the process to invite EoIs along with bids is under way, the government is also determined to import the LNG from Qatar too.

“Qatar doesn’t take part in bidding, as it believes in maturing such deals through agreements with the respective state. That is why the negotiations are underway with the quarters concerned in Qatar,” says Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.

The ministry plans to ensure importing the first consignment of 400 mmcf of LNG and inject it to the system (200mmcf each for the Sui Northern Gas Pipelines Limited and Sui Southern Gas Company after re-gasifying it at Port Qasim) by December this year.

Talking to Dawn, the minister said soon after passing deadline of July 15 set for the submission of EoIs by the interested parties, the ministry would start process to shortlist the firms whose LNG prices would be the lowest. And after selection of firms, the ministry would invite them to submit request for proposals (RFPs) to it. “We hope this process will complete till September 15 or so, enabling us to import the LNG by December this year,” Abbasi added.

He said the Elengy Terminal Pakistan Limited, a subsidiary of the Engro Corporation Limited, had started work to establish a terminal and other required infrastructure at the port in this regard.

When asked that how the firm would ensure completion of the terminal and infrastructure etc in next five to six months to enable government receive the first LNG’s consignment, the minister said: “Though the firm, under the contractual obligations, is to construct a special jetty at the port by March 31 next year, it has assured us to complete the task by November or December.”

An SNGPL official said Qatar had agreed to export LNG after a special jetty with necessary infrastructure was established at Port Qasim.

Published in Dawn, July 6th, 2014