ISLAMABAD: Pakistan LNG Ltd (PLL) has sought exemption from applicability of PPRA conditions to procure approximately 24 cargoes during the period of one year, ie, January-December 2024, sources close to the Minister Energy told Business Recorder.
Pakistan LNG Ltd is mandated by the government of Pakistan to import LNG to meet the natural gas requirements of the country. Accordingly, PLL is managing LNG imports through long-term procurement contracts as well as spot procurement contracts.
Ministry of Energy (Petroleum Division) in a letter dated July 11, 2023 requested to allow exemption to Pakistan LNG Limited (PLL) from rules 13(1) and 35 of Public Procurement Rules, 2004 to procure LNG from the spot market from January 2024 to December 2024 (approx.24 spot cargoes).
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PLL stated through a letter dated November 21, 2022, that PPRA granted partial exemption to PLL from applicability of Rules 13 and 35 of PP Rules, 2004 for the procurement of spot LNG cargoes till December 31, 2025.
PLL seeks exemption from PPRA conditions has entered in the procurement process for winter months of calendar year 2024, ie, January 2024 and February 2O24.
Considering the unprecedented global LNG dynamics resulting in extreme volatility expected to continue during the upcoming years PLL has requested to be granted exemption under section 21 of PPRA Ordinance, 2022, from applicability of Rules 13(1) and 35 of PP Rules, 2004 for the procurement of spot cargoes during the period of January- December 2024 (approx. 24 spot cargoes).
Earlier, in accordance with Section 21 of the PPRA Ordinance, 2022, on the recommendation of the PPRA Board in its 64th meeting held on September 21, 2022, the Federal Government on November 11, 2022 granted partial exemption to Pakistan LNG Ltd. (PLL) from applicability of Rule 13(1) and 35 of PPRA Rules, 2004, for procurement of spot cargoes during the period of January 2023 to December 2O23 (approx. 36 spot cargoes).
In view of the existing LNG market dynamics, PPL has sought exemption under section 21 of PPRA Ordinance 2022, from applicability of Rules 13(1) and 35 of PP Rule, 2004 for the procurement of spot cargoes during the period of January - December 2024(approximately 24spot cargoes) for consideration and approval of the PPRA Board under section 21 of the PPRA Ordinance, 2002.
According to sources, PPRA Board is expected to consider the request of PLL sent through Ministry of Energy (Petroleum Division) to the Public Procurement Regulatory Authority (PRRA). The sources said, procurement of LNG on spot, will be in addition to LNG being imported from Qatar on the basis of long-term agreement.
Copyright Business Recorder, 2023