Govt moves to ensure transparency in LNG buying

Published August 5, 2021
In this file photo, Finance Minister Hammad Azhar is addressing a press conference after chairing a meeting of the Economic Coordination Committee. — DawnNewsTV/File
In this file photo, Finance Minister Hammad Azhar is addressing a press conference after chairing a meeting of the Economic Coordination Committee. — DawnNewsTV/File

ISLAMABAD: Taking some corrective measures in procurement of Liquefied Natural Gas (LNG), the government on Wednesday ordered its two entities — Pakistan State Oil and Pakistan LNG Ltd — to make public disclosure of bidding results in a timely manner to ensure transparency.

“Both the entities are advised to publish the results of the procurement decisions within 24 hours on their respective websites,” ordered Energy Minister Hammad Azhar to the two state-owned entities involved in the procurement of LNG.

In separate letters, the minister also asked the chairmen of the board of directors (BoDs) of the two firms to themselves deliberate upon and decide the matter of procurement of spot RLNG (Regasified LNG) cargoes “to enhance transparency and further improve processes”.

The minister said “these instructions are meant to ensure professional oversight by the respective BODs on such vital issues, as well as to ensure timely release of procurement information, which is mandatory for ensuring market efficiency as well as public disclosure”.

Through his Twitter handle, the minister also said he had advised the BODs of PSO and PLL to “deliberate & decide on timing, acceptance or rejection of bids” and that “decisions taken in this regard to be posted on their websites”.

The minister said the process of spot buying of RLNG was already conducted through competitive bidding and tenders and the objective now of these enhanced measures of transparency was to end speculation and misreporting.

The decision followed inter-ministerial discussions on recent public criticism on timing, processes and bidding results leading to some of the expensive spot purchases by the two companies. Non-public disclosure of bidding results had also come under debate including comparisons of spot and long-term LNG import deals. This had led, among other things, withdrawal of gazette notification of RLNG sale price because of non-disclosure of full procurement results.

Published in Dawn, August 5th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Smog hazard
05 Nov, 2024

Smog hazard

THE Punjab government would be keen to forget its first year of treating smog as ‘a year-round epidemic’ instead...
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.