KARACHI, Jan 12: Sui Southern Gas Company Ltd. (SSGC) said on Friday it was awaiting government approval to invite bids from international firms to build and supply the country’s first liquefied natural gas (LNG) plant.

“We are seeking the government's approval because it is a huge long-term contract... the project’s worth is $15 billion to $20 billion,” Munawar Baseer Ahmad, managing director of state-run SSGC, told a news conference.

The project's worth includes the potential value of long-term contracts to supply imported gas as well as build the plant.

Industry sources say the plant's development would cost $300-$400 million.

Ahmad said the company had already short-listed international companies, who would be allowed to participate in the bids.

Industry officials said the company is negotiating with Oman and Qatar as well as majors such as BP, Royal Dutch Shell and BG Group for the project.

“In the next Economic Coordination Committee of the cabinet meeting, we will hopefully get an approval from the government to invite bids,” he said.

The date for the next ECC meeting is yet to be announced but it is expected to be held later this month. SSGC has already appointed ABN Amro as the financial adviser for the project.

Mr Baseer said SSGC, which will take an equity stake in the project, planned to appoint a project developer in the first quarter of 2007, but declined to identify the short-listed firm.—Reuters