The News.........................................Thursday, October 13, 2011 .
KARACHI: The National Logistic Cell (NLC) has also jumped into the race to acquire the sole liquefied petroleum gas (LPG) import terminal as it has filed a petition against the sale of Progas Pakistan to Sui Southern Gas Company (SSGC), sources said on Wednesday.
NLC being the shareholder in Progas has expressed interest to acquire the sole LPG import terminal, whose significance has multiplied after the LPG Policy 2011, they said.
Though certain clauses of the LPG policy have been suspended by the Lahore High Court (LHC), still the “available for sale” company has its monopolistic edge.
The Lahore High Court has suspended some clauses of the LPG (Production and Distribution) Policy 2011 that were formulated to establish a public monopoly in the LPG sector, forced an increase in the prices of the locally-produced LPG and make imports mandatory for all LPG marketing companies irrespective of their size or market conditions, they said.
The sources said that the SSGC’s bid to acquire Progas Pakistan Limited, an LPG marketing company that was forced into liquidation proceedings at the Sindh High Court (SHC), has been challenged by the subject company’s shareholders.
The revised offer was made in the court upon the directives of the high court and the new bidders represent Progas shareholders; the same ones who had filed a petition in the first place.
The new bidders had offered Rs2.25 billion for Progas against the bid of Rs1.84 billion by the Sui Southern Gas Company.
The sources also said that SSGC has consented to match the bid offered by the other party and has sought the board’s approval.
However, it could not be ascertained that whether NLC, the logistic arm of the government, has made a separate challenge or it is partnering with other directors of Progas.
Meanwhile, Associated Group (AG) Chairman Iqbal Z Ahmed excused to comment on the matter and termed it sub judice.
The high court is set to rule its decision on October 14. The court decision was due on September 13, but it was delayed for a month, the sources said.
The acquiring party will have to obtain licences from the Oil and Gas Regulatory Authority (OGRA) and EPA clearance and negotiate concessions with the Port Qasim Authority.
Progas is in liquidation and its assets valued at Rs6 billion against the secured and unsecured liabilities of Rs2 billion.
Progas Pakistan Limited is the largest liquefied petroleum gas infrastructure and marketing company in Pakistan with its own dedicated import handling terminal at the Port Qasim.
The assets include a fully functional multipurpose Jetty, Trestle, LPG storage facility (6,750MT) and downstream logistics and filling plants.
The annual terminal capacity is two million tons and the terminal can handle up to 15,000 DWT vessels with provisions to handle up to 80,000 DWT vessels for LNG imports at an additional cost.
NLC being the shareholder in Progas has expressed interest to acquire the sole LPG import terminal, whose significance has multiplied after the LPG Policy 2011, they said.
Though certain clauses of the LPG policy have been suspended by the Lahore High Court (LHC), still the “available for sale” company has its monopolistic edge.
The Lahore High Court has suspended some clauses of the LPG (Production and Distribution) Policy 2011 that were formulated to establish a public monopoly in the LPG sector, forced an increase in the prices of the locally-produced LPG and make imports mandatory for all LPG marketing companies irrespective of their size or market conditions, they said.
The sources said that the SSGC’s bid to acquire Progas Pakistan Limited, an LPG marketing company that was forced into liquidation proceedings at the Sindh High Court (SHC), has been challenged by the subject company’s shareholders.
The revised offer was made in the court upon the directives of the high court and the new bidders represent Progas shareholders; the same ones who had filed a petition in the first place.
The new bidders had offered Rs2.25 billion for Progas against the bid of Rs1.84 billion by the Sui Southern Gas Company.
The sources also said that SSGC has consented to match the bid offered by the other party and has sought the board’s approval.
However, it could not be ascertained that whether NLC, the logistic arm of the government, has made a separate challenge or it is partnering with other directors of Progas.
Meanwhile, Associated Group (AG) Chairman Iqbal Z Ahmed excused to comment on the matter and termed it sub judice.
The high court is set to rule its decision on October 14. The court decision was due on September 13, but it was delayed for a month, the sources said.
The acquiring party will have to obtain licences from the Oil and Gas Regulatory Authority (OGRA) and EPA clearance and negotiate concessions with the Port Qasim Authority.
Progas is in liquidation and its assets valued at Rs6 billion against the secured and unsecured liabilities of Rs2 billion.
Progas Pakistan Limited is the largest liquefied petroleum gas infrastructure and marketing company in Pakistan with its own dedicated import handling terminal at the Port Qasim.
The assets include a fully functional multipurpose Jetty, Trestle, LPG storage facility (6,750MT) and downstream logistics and filling plants.
The annual terminal capacity is two million tons and the terminal can handle up to 15,000 DWT vessels with provisions to handle up to 80,000 DWT vessels for LNG imports at an additional cost.