Ministry of Petroleum Secretary Imtiaz Qazi said on Saturday that tender would be floated for multi-billion dollars Mashal liquefied natural gas (LNG) integrated import project in mid-February on the basis of the decision by the Economic Co-ordination Committee (ECC) of the Cabinet.
"Ministry of Petroleum will float a tender to invite companies to participate in bidding for import of LNG, and setting up LNG terminal project in middle of February," he said while talking to media men after "Third Oil and Gas Pakistan 2011 Forum". He said that the tender would be floated through international media.
The ECC recently decided to scrap the multi-billion dollars Mashal LNG import project, and directed the Ministry of Petroleum to invite fresh bids in the light of the recommendations of the Law Ministry. Earlier, the ECC had awarded the 3.5-million cubic feet per annum LNG import contract to a French company called 'GDF-Suez' and Dutch firm '4Gas' to set up LNG terminal. But the Ministry of Petroleum had not tabled a proposal of Vitol/Fauji Foundation in that meeting, that led to a controversy, and the case landed in the Supreme Court.
The court directed to seek fresh nod from ECC, and Petroleum Ministry had again tabled a proposal of '4Gas' along with Vitol/Fauji Foundation. The ECC directed the authorities to seek opinion of Law Ministry on the issue. Ministry of Petroleum approached the Ministry of Law, almost three times, to seek opinion on LNG Mashal project in light of Supreme Court decision.
But Law Ministry showed no change in its stance and suggested to invite fresh bids to avoid any controversy on LNG Mashal project deal in future. The Ministry of Petroleum recently placed the matter before the ECC on January 25, 2011 in light of the opinion of the Law Ministry that decided to scrap deal with Dutch firm '4Gas' and French firm 'GDF' as LNG supplier and directed Petroleum Ministry to invite fresh bids.
Dutch firm '4Gas', based in the Netherlands, had submitted commitments of Carlyle/Riverstone and AtlasInvest, which are main shareholders of '4Gas' and US government agency Overseas Private Investment Corporation (OPIC) as credit provider, International Financial Corporation (IFC) a World Bank subsidiary as 12.5 percent equity partner and GDF Suez as LNG supplier. OPIC and IFC had committed to provide $370 million for setting up a terminal at Port Qasim for LNG import. The cost was estimated at over $600 million to complete the two phases of the terminal under Mashal LNG project.