The federal cabinet of Pakistan has reviewed the results of the country’s first LNG import project tender. Pakistan has invited parties to bid for two LNG import projects, which will each provide 400 mcf/d (4.1 bcm/year) to the country’s power sector. Three bidders were pre-qualified on 2 March 2013 enabling the reviewers to proceed to the second stage of the two-envelope bidding process.
The consortium led by Global Energy Infrastructure Pakistan (GEIP) with Exxon Mobil as the gas supplier has offered LNG at US$18.16/MMBTU. The consortium led by Pakistan Gasport Limited (PGPL), which is majority-owned by China Harbour Engineering Company and Gunvor, the world’s third largest oil and gas trading company, has offered LNG at a price of US$17.71/MMBTU. Shell and ENI are the gas suppliers for PGPL.
The third consortium, which is led by Elengy Terminal Pakistan Limited (ETPL), a wholly-owned subsidiary of Pakistan’s Engro Corporation, submitted a conditional and multi-priced offer, which does not comply with the tendered terms and conditions and has been then disqualified. Accordingly, PGPL’s price offer stands as the lowest evaluated.
The federal cabinet has to provide approval to SSGC to sign a 15-year agreement with the lowest bidder. The private sector project will cost an estimated US$200m and provide gas supplies to Pakistan’s power sector as a replacement for furnace oil and diesel.