"Unfortunately, the information contained in the news item is totally devoid of facts and ground realities. SSGC deems it essential to put all the facts in right perspective so that a true and accurate picture can be presented.
"The said news item erroneously reports that SSGC and Elengy Terminal Private Limited (ETPL) have inked an agreement for the procurement of additional re-gasification capacity of 200 mmcfd RLNG from ETPL, by setting aside PPRA rules.
"It must be reiterated that right from the very inception of the said procurement, being a prudent operator, upon receipt of the directives of the Government of Pakistan, SSGC sought advice from a leading law firm which is well conversant with the laws of Pakistan, including but not limited to the Public Procurement Rules 2004. SSGC, based on the considered opinion and advice of the law firm invoked Rule 42 d (ii) "Negotiated Tendering" of the Public Procurement Rules 2004 and followed the same in letter and spirit so as to maintain transparency at every stage of the procurement process. It is denied that SSGC ever invoked Rule 42 (c) (iv) which relates to repeat orders not exceeding 15% of the original procurement.
"SSGC takes this opportunity to clarify that the Company has been playing a key role in the re-gasification of LNG for mitigating the demand-supply gap of natural gas. In 2014, SSGC and ETPL signed a deal for supplying 400 mmcfd RLNG to the consumption nodes. Subsequently, in March 2015the ETPL Terminal was commissioned for transmitting 400 mmcfd RLNG.
"Then in August 2016, the Ministry of Petroleum and Natural Resources upon confirmation by SNGPL in writing confirmed that the latter requires additional 200 MMCFD RLNG under their commitment to various customers primarily in the power sector. The Government of Pakistan directed SSGC for the procurement of additional re-gasification capacity of 200 mmcfd from ETPL, which was at that time the only operator of its Terminal at Port Qasim, Karachi.
"Subsequently, SSGC floated a tender enquiry from ETPL through negotiated tendering by invoking Rule 42 d (ii) of PPRA Rules 2014. In accordance with the PPRA rules for the sake of transparency, the tender enquiry was published in leading news dailies and posted in PPRA and SSGC web sites on November 16, 2016. In addition, Managing Director PPRA was also informed by SSGC about Rule Clause 42 (d) (ii) allows the procuring agency to engage in negotiated tendering with one or more suppliers with or without prior publication of procurement notification. SSGC reiterates that the whole process of procurement of enhanced capacity of 200 MMCFD of LNG Terminal was transparent and in accordance with the relevant laws."
Copyright Business Recorder, 2017