Wednesday, April 21, 2010

LNG case: court surprised as uninvited company contracted

Geo 436 ISLAMABAD: Chief Justice of Pakistan Justice Iftikhar Muhammed Chaudhry voiced surprise in LNG import contract case, saying how a company not included in the bid, has been awarded the contract, Geo News reported Wednesday. A three-member SC bench comprising Chief Justice Iftikhar Mohammad Chaudhry, Justice Chaudhry Ijaz Ahmed and Justice Ghulam Rabbani, heard the suo motu case regarding giving short-term import contract of Liquefied Natural Gas on exorbitant rates. Special Secretary Petroleum GA Sabri told the court that Paris-based utility GDF Suez and Shell Pakistan (SPL) did not attend the Expression of Interest for short-term LNG project. Sabri told the court that Sui Southern Gas wrote a letter on May 4, 2009 to the Petroleum Minister to confer the LNG contract on Shell. Sabri said Fauji/VITOL informed via fax about the offer of 2 mliion tonnes of gas at 9am in January 2010, in which the price was cut. The offer of Fauji/VITOL was not included in the meeting of Economic Coordination Committee of the Cabinet (ECC). The court said in its remarks that the negotiations could be held only with those who participated in the EoI, asking Sabri weather Fauji/VITOL was apprised of the fact that their offer was not taken up. Sabri responded negatively. The Chief Justice said in his remarks how the negotiations could be held with those who did not attend the bidding. The CJ said five companies were given notices for Mashal Project. The court said when a sixth company was included for the project, an advertisement should have been published for the purpose. According to the report published in The News, on which the court took suo motu notice, senior officials of the Ministry of Petroleum and Natural Resources awarded the $25 billion contract to the highest bidder, ignoring the lowest bid jointly offered by Fauji Foundation and multinational energy firm Vitol. The hearing was adjourned till tomorrow.

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