Restructuring of lng terminal, pipeline projects_ ecc sets 5 stringent conditions _ business recorder

Economic Co-ordination Committee (ECC) of the Cabinet has set five stringent conditions for restructuring of Gwadar-Nawabshah LNG terminal and pipeline project including imposition of surcharge at Rs 0.03 kWh to service the loan, well informed sources told Business Recorder. Tendering and procurement in construction Giving the background, sources said, the ECC on October 2, 2014 had decided implementation of Iran Pakistan Gas Pipeline project under the alternative strategy preferably under the G to G arrangement or BOOT basis.

Accordingly, Petroleum Ministry entered into a G to G framework agreement with National Energy Administration of China for the project on April 20, 2015. Selective tendering Under the agreement, Inter State Gas System (Pvt) Limited from Pakistan side and China National Petroleum Pipeline Bureau (CPP) engaged, being the nominated entities.

According to the plan, in phase-1 upto 600 MMCFD of RLNG would be transported through Gwadar-Nawabshah gas pipeline project which would then be connected with the North- South gas pipeline project at Nawabshah for transporting gas volume till the SNGPL network near Kasur. Selective tendering process Gwadar LNG terminal was to be realised and operated under a BOOT model.


What is tendering in procurement The Chinese nominated entity, CPP, would immediately start the EPC work on Gwadar-Nawabshah 700 km pipeline segment and submit the proposal for Gwadar LNG terminal on BOOT basis under a G to G framework agreement at the earliest. Procurement and tendering rics The target completion of the terminal and pipeline under phase-1 was December 2017.

Ministry of Petroleum and Natural Resources was further informed that in view of the timeline, consultancy services for Gwadar LNG terminal were required for which a necessary tendering process had been initiated. E tendering system of maharashtra GHPL would provide necessary funds for the consultancy services as already was being done for the gas pipeline segment of the Gwadar Nawabshah gas pipeline project. Competitive tendering nhs In phase-II of the project with additional compression provision, the gas carrying capacity would be enhanced up to 1,500 MMCFD thereby accommodating Iranian gas volumes, if they become available. Tendering documents The target completion of phase-II was December 2018.

Ministry of Petroleum and Natural Resources proposed the following actions: (i) CPP will immediately start work on the Gwadar-Nawabshah gas pipeline project under the G to G framework agreement in accordance with the EPC contract against a sovereign guarantee. Tendering process in kenya Funds requirement for 15 per cent GoP share to meet the capital expenditure requirements including for land acquisition shall be funded through GIDC or Government Holding Private Limited (GHPL) funds; (ii) CPP will construct the Gwadar LNG terminal under the G to G framework agreement on BOOT basis and will submit its proposal for ISGS consideration. Online tendering websites All consultancy costs for Gwadar LNG terminal shall be funded by GHPL; ( iii) CPP to make necessary financing arrangements as per framework agreement of April 20, 2015. E tendering websites Ministry of Petroleum and Natural Resources will expedite formalities to avail financing facility from China EXIM bank. Meaning of tendering process Approval of the revised PC-I of the project at CDWP and ECNEC is to be expedited; (iv) security provision as well as tax and other incentives as provided to CPEC projects; and (v) GHPL will continue full funding of the consultancy services of M/s ILF/ NESPAK JV for the gas pipeline segment of the Gwadar Nawabshah gas pipeline project.

It was stated that the commercial aspects of the proposal of CPP would require evaluation and negotiation at an appropriate level. What is the meaning of tendering Being a capital intensive project of national importance requiring a sovereign guarantee, Petroleum Ministry proposed the constitution of a Price Negotiation Committee (PNC) comprising the following to negotiate the price and other important commercial aspects of the contract with CPP: (i) Chairman Board of Investment (BoI)- Chairman;(ii) Secretary Petroleum- Member ;(iii) Secretary Finance or his nominee- Member ;(iv) Managing Director SNGPL- Member and ;(v) Managing Director, ISGSL.

After a discussion, the ECC, in its meeting held on April 11, 2016 approved the proposal subject to the following: (i) Petroleum Ministry will ensure full compliance with the codal formalities and commercial viability; (ii) the revised strategy will not increase overall cost of the project and the consequential tariff; (iii) GoP may provide a guarantee for financing against EPC portion of the project. E tendering system ppt No such guarantee will be provided for portion of the project to be undertaken on BOOT basis. Tendring careline The loan will be serviced by PHPL through a pass through tariff as surcharge of Rs 0.03/kWh; (iv) GoP will not provide minimum throughput guarantee which should be covered under commercial arrangements. Selective tendering advantages and disadvantages GoP may, however, consider providing a counter guarantee for gas pipeline of the project; and (v) the PNC while negotiating will also consider tax and other incentives only after ascertaining viability.

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