After the relaxed procurement rules, Pakistan has sough eight import cargoes of Liquefied Natural Gas [LNG] at a fixed dollar price and tight tendering schedule for delivery between April 30 and June 28.
On Monday, Pakistan LNG Ltd (PLL) — one of the public sector entities responsible for LNG import invited bids for delivery of eight cargoes in May and June and set the deadline of March 30 (almost a week time). The company would also be reducing the time between bid evaluation and award of the contracts.
The bids have been invited for one cargo delivery on April 30, followed by four weekly cargoes in May and three in June.
“Bidders are requested to review the Bid Document carefully as some key reforms in the process have been implemented”, wrote the PLL on its website. The company has also asked the bidders to offer their bids in fixed dollar price instead of slope linked to Brent crude price.
Tight tendering schedule will help secure economical shipments.
Except for a few emergency tenders a couple of months ago, the PLL had always sought bids as percentage of Brent crude price and with longer terms for bidding, bid evaluation, award of contract and holding bidders for longer period.
This resulted in various forms of limitations and higher bid prices as suppliers had to hold on their ships and LNG. This was unlike private spot players who could make final decisions on a short notice.
Late last month, the Federal Cabinet had granted partial exemption to PLL from Rule-35 of the Public Procurement Regulatory Authority (PPRA) rules by relaxing the period between announcement of evaluation report and award of tenders for spot cargoes. More than half of Pakistan’s total LNG imports are based on long-term contracts while the rest of the required quantities are met through spot tenders.
The board of directors of PPRA led by secretary finance had recommended relaxations in its rules to the cabinet saying this would help secure economical and reliable spot LNG cargoes.