Pakistan LNG seeks PPRA exemption for 24 spot cargoes

This permission would allow Pakistan LNG Limited to procure liquefied natural gas from spot market from January 2024 to December 2024 to fulfill country’s needs.

Pakistan LNG Limited (PLL) has sought exemption from certain conditions of the Public Procurement Regulatory Authority (PPRA) rules to facilitate the procurement of 24 LNG cargoes during the period of January to December 2024.

PLL operates under the government’s mandate to secure LNG imports to meet Pakistan’s natural gas demands, relying on both long-term and spot contracts for procurement.

A BR report said that the Ministry of Energy (Petroleum Division), in a letter dated July 11, 2023, officially sought permission to exempt PLL from the applicability of Rules 13 (1) and 35 of the Public Procurement Rules, 2004. This exemption would allow PLL to procure 24 LNG cargoes from the spot market from January 2024 to December 2024.

This request follows PLL’s communication in a letter dated November 21, 2022, wherein PPRA had granted partial exemption to PLL from the specific rules for the procurement of spot LNG cargoes until December 31, 2025. PLL’s exemption request is centered on the procurement process for the winter months of the calendar year 2024, specifically January and February 2024.

PLL underscores the necessity for this exemption due to the unpredictable global LNG dynamics, resulting in extreme volatility that is expected to persist in the foreseeable future. As a result, PLL has urged to be granted an exemption for the procurement of spot cargoes.

What are PPRA Rules 13 (1) and 35?

Rule 13(1) of the PPRA rules 2004 pertains to the response time for the receipt of bids or proposals in the procurement process. This time frame depends on factors such as the complexity of the procurement, availability of resources, and its urgency.

For local bidding, response time cannot be less than 15 days from the date of publishing the advertisement or notice. For international bidding, it should not be less than thirty days from the date of publication of the advertisement or notice.

Rule 13(1) deals with the time allowed for bid submission in procurement, while Rule 35 pertains to the announcement of bid evaluation results, ensuring transparency and justification for bid decisions.

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