SSGC clarification

"This is in response to a news item that appeared in national dailies on October 19, 2014 regarding the import of LNG in Pakistan. In order to clarify certain ambiguities in the content and to straighten the facts, please find below, SSGC''s viewpoint that would help to a the correct picture.
"SSGC and Engro Elengy Terminal Private Limited (EETL) signed an LNG service agreement (LSA) for storage and regasification of LNG in April 2014. The contract to EETL was awarded through an open tendering process initiated in August 2013. The Federal cabinet while endorsing the ECC recommendations, stipulated that policy guidelines for legalised tariff of $0.66 per MMBTU (as against $0.80 per MMBTU offered in a previous tender and other benchmarks) be issued to OGRA and that all other commercial aspects of the import of LNG agreement shall be settled between the respective parties to the contract. Under the LSA, both the parties are required to provide assurances/guarantees to cover each other''s risks. EETL accordingly submitted a bank guarantee as a performance bond and a corporate guarantee issued by its parent company Engro Corporation. Similarly, SSGC under the LSA, was required to give a guarantee for payment of LNG service charges in the form of Standby Letter of Credit (SBLC). The SBLC requirement was specified in the tender documents.
"EETL has made a substantial investment and progress at site. All the material has been ordered, including material for 24km pipeline and fittings have been delivered. In addition, dredging of basin has been completed, construction of pipeline and piling for trestle and jetty have started. EETL has also arranged FSRU through Excelerate, USA. "The entire procurement process started in August 2013 from tendering to award has been transparent leading to a very competitive rate and the project implementation is in accordancehe with the schedule agreed in the LSA. "In accordance with the policy of the Government of Pakistan to deal with the energy crisis in the country, a process for setting up a second LNG Terminal at Port Qasim has been initiated. The contract of the Terminal will be awarded through an open tendering process in a transparent manner," the clarification concluded.