Bidding process for Makori Gas Field confuses bidders

ISLAMABAD: Bidders at a public sector LPG producer’s tender opening were informed that producers were authorised to conduct auction of LPG produced at Makori Gas Field on signature bonus basis, bidders present at the session said on Tuesday.

Bidders walked out of the tender opening completely confused, not knowing if PPL officials concealed an order of Peshawar High Court (PHC) that was later made available to some of them. The order of the PHC, which had been issued the previous day, clearly states “Meanwhile, the auction proceedings may continue, however, no final order or supply be made in pursuance of the auction impugned herein.”

A marketing company represented at the tender opening, specifically inquired from the three officials of Pakistan Petroleum Limited if there was an order of any court with respect to the auction. PPL officials not only denied to disclose the order to the bidders but also referred to their applications challenging an Oil and Gas Regulatory Authority (Ogra) decision to prohibit signature bonus as if those applications had been successful.

Counsel for a party to the applications, presently pending before Islamabad High Court, informed this correspondent that the applications had not been decided.

Total of 36 LPG marketing companies participated in the bidding process for the sale of PPL share of 180 metric tonnes daily produced at Makori Gas Field in Karak district.

Collection of signature bonus was declared illegal by an order issued by Ogra on 22nd June, 2018. Ogra had found signature bonus opposed to the LPG (Production and Distribution) Policy of 2016.

The Council of Common Interests (CCI) had approved the LPG Policy after it decided that the deregulation of LPG prices had failed to deliver, and that regulating prices at all levels of the supply chain was the way forward to ensure provision of LPG to consumers at affordable prices.

Producers are accused of having resorted to every possible measure to defeat enforcement of the policy, which, marketing companies say, had led to 18 months’ delay in publication of the policy and amendment of LPG Rules to give effect to it.