PLL engaging commercial consults to evaluate LNG supply tenders

KARACHI: Pakistan LNG Limited (PLL) plans to engage experienced international or local consultancy firms for provision of commercial consultancy services during tender evaluation process to procure and import LNG from international suppliers on competitive basis during financial year 2019-20, an official said.

PLL is a subsidiary of Government Holdings (Pvt) Ltd (GHPL), which is owned by the government of Pakistan. PLL has the mandate to procure liquefied natural gas (LNG) to meet the country’s requirements.

To diversify its energy mix and supplement domestically produced gas, Pakistan in the recent past commissioned two LNG receiving terminals on fast track basis and was managing its LNG supply chain through a mixture of long-term supply agreements and procurement of LNG on spot basis.

“As per approved policy of the government, Pakistan LNG Limited intends to procure/import LNG from international suppliers through a mixture of government-to-government and open tender. Services of an experienced consultancy firm are required for provision of commercial consultancy services during tender evaluation process and finalisation of any agreement for the procurement and import of LNG from international suppliers on the most competitive basis and in line with the best international professional techniques and practices,” an official said.

According to details, the consultant would open and evaluate bids, prepare reports, review the contract documents and agreements, etc and provide full support during commercial and financial negotiations of contract agreement with LNG supplier(s) and ancillary agreements.

Moreover, the consultant would have to attend meetings with all stakeholders, and prepare briefs, reports, and presentations for high level committees, PLL's Board of Directors, Ministry of Energy (Petroleum Division), etc.

The consultancy firm would also prepare, conduct and provide analysis of market trends, developments or research, as well as prepare responses to incidental correspondence in case of any complaints, queries, and comments from external entities, government or private organisations.

Import of LNG was estimated at around eight million tonnes last year. Expected annual import of LNG would rise to 15-30 million tonnes over the next four to five years, according to official estimates.

At least 300,000 gas consumers were added every year, and they consumed local production at cheap rates elbowing out productive sectors to rely on imports.

Both of Pakistan’s existing LNG terminals were currently nearly fully utilised, while another two were expected to announce a final investment decision this year. The two import terminals have a regas capacity of 1.2-1.3 billion cubic feet of gas per day, or about 9-10m tonnes of LNG a year.