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Buying LPG spot cargoes exempted from PPRA rules

MM News Staff by MM News Staff
July 2, 2023
Reading Time: 1 min read

ISLAMABAD: The Federal Cabinet has exempted procurement of 20,000 MT Liquefied Petroleum Gas (LPG) cargoes on the spot per month from PPRA Rules 2004 from April to September 2023.

The Managing Director of PPRA noted during a recent PPRA Board meeting that Cabinet Division had received suggestions from the Board about the purchase of LPG spot along with a draught summary in order to obtain clearance from the Federal Government.

After carefully reading the summary, the Federal Cabinet decided to exempt Sui Southern Gas Company LPG Pvt Ltd (SLL) from the requirements of Rules 35 and 40 of the 2004 Public Procurement Rules for the purchase of spot cargoes of LPG from April to September 2023, at a rate of roughly 20,000 MT per month.

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As a result, PPRA informed the Ministry of Energy (Petroleum Division) and SLL of the Federal Cabinet’s decision in a letter dated June 14, 2023.

Ministry of Energy (Petroleum Division) in its letter of April 5, 2023 requested PPRA to grant exemption to SSGC LPG Ltd. (SLL) from Rule 35 & 40 of PP Rules, 2004 for the import of LPG spot cargoes from April 2023 to March 2024 (approx.) – 20,000 MT LPG, i.e., four cargoes per month.

SSGC LPG Pvt. Limited stated that in September 2022, Ministry of Energy (Petroleum Division) had given a task to both the SSGC (through its subsidiary SLL) and SNGPL to import additional LPG during winter season from November 2022 to March 2023 to overcome severe gas shortages in Pakistan.

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