ISLAMABAD - The Sui Southern Gas Company Limited (SSGCL) has formally revoked the tender for $25 billion worth of Liquefied Natural Gas (LNG) import project following the decision made by Economic Coordination Committee (ECC) of the cabinet last week, sources said on Saturday.

Sources further said that SSGCL has cancelled the tender of LNG import after the decision made by ECC. Earlier, the ECC had decided to revoke two LNG import projects initiated by previous regime of PPP to meet the burgeoning energy needs of the country. The SSGCL has revoked the tender under the sub clause, 2 and 4 of the clause 4.

According to the sources, financial bids were to open from July 1. However, the department concerned would issue tenders in next few days. “Following the decision of new federal government to cancel the tenders issued by the PPP-led coalition government for the import of LNG, the ministry of petroleum & natural resources is now set to initiate new process to import LNG,” sources said.

The Economic Coordination Committee (ECC) in its last meeting, which met under the chair of Finance minister Ishaq Dar, authorized Ministry of Petroleum to engage with Government of Qatar for procurement of up to 500MMCFD LNG. Ministry of Petroleum and Natural Recourses forwarded the summary for subject approval. The private sector would play no role in importing LNG.

It might be mentioned here that the previous regime (PPP-led coalition) after four years working had designed two LNG import projects to meet growing energy needs of the country. One tender was issued to bring 200mmcfd of LNG while the second one was planned to bring 400mmcfd of imported LNG to the country despite the fact that transparency and PPRA rules were sat aside.

The official also told that Sui Southern Gas Company Limited (SSGC) had been instructed to stop financial bids that were scheduled to open on 1st July. He also informed that the ministry had designed to initiate a new 500mmcfd imported LNG project with certain conditions. The government would ensure the standard of transparency and the spirit of merit in this project while new tenders would be issued after getting the ECC nod.