Govt to buy LNG from Qatar at 20pc less cost
 

ISLAMABAD: The Economic Coordination Committee (ECC) that meets today (Thursday) with Adviser to Prime Minister on Finance Revenue and Economic Affairs Dr Abdul Hafeez Shaikh is likely to accord approval to the additional import of 200 mmcfd LNG from Qatar, a senior official of Petroleum Division told The News.The agenda of the ECC meeting also says the Price Negotiation Committee (PNC) headed by the secretary petroleum will brief the meeting on further import of LNG.The official said the government will import additional 200 mmcfd LNG from Qatar at a 20 percent less cost against what the PML-N government had finalised at 13.37 percent of the Brent for 15 years.This will also be different from the 15-year agreement reached by the PML-N government with Qatar as in that agreement after 10 years, the price was to be renegotiated, but in this deal with the Qatar, after five-year time, the facility to renegotiate the LNG will be available. “We have carved out various options, one is to import just 200 mmcfd more LNG, and in this case it will be imported from Qatar.In the second scenario we require importing 400 mmcfd LNG then for which three countries have submitted their revised downward bids for 100 mmcfd each. We have signed inter-government agreements (IGAs) with seven countries out of which we received three bids and the lowest bid was shared with Qatar. In turn, Qatar further lowered the LNG supply than the lowest bid received earlier,” said the official.When asked if the three countries, who offered bids under GAs expressed concern with the Islamabad as their lowest bid was used to get more favourable rates from Qatar expressed concern, the official said: “No, not at all, as when the Petroleum Division approached Qatar authorities after getting the bids from the three countries under IGAs, and cited those lower bids and asked if Qatar was prepared to make a new offer at a lesser price. Qatar in return further lowered the rates from the lowest bid. After that, Pakistan approached the three countries who had submitted their bids telling them to match Qatar’s offer who lowered their bids but not to the level of the Qatari offer.”The official said if the ECC decides to import 400 mmcfd LNG then the lowest two bidders from the said countries under IGA will also be accommodated. However, if the ECC allows import of 200 mmcfd LNG, then the government would only import from Qatar.To a question, the official said there are two methods to procurement of LNG under PPRA Rules; one is through non negotiable tenders and the other is through inter government agreements which is negotiable.http://feeds.feedburner.com/~r/com/cwEr/~4/fmB7BVZ_tQ4

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