Request for Proposal for the Supply of LNG Spot LNG Supply RfP 092015.pdf · Liquefied Natural Gas...
Transcript of Request for Proposal for the Supply of LNG Spot LNG Supply RfP 092015.pdf · Liquefied Natural Gas...
© 2015 Navigant Consulting (Europe) Ltd. Page I
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
Request for Proposal for the Supply of LNG
Issued by:
National Electric Power Company of Jordan
07 June 2015
© 2015 Navigant Consulting (Europe) Ltd. Page II
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
Acronyms
bcf/d Billion Cubic Feet Per Day
FSRU Floating Storage and Regasification Unit
GWh Gigawatt Hour
IPP Independent Power Producer
JGTP Jordan Gas Transmission Pipeline
JKM Japan/Korea Marker
LNG Liquefied Natural Gas
LNGC Liquefied Natural Gas Carrier
MMBtu Million British Thermal Units
mmscf/d Million Standard Cubic Feet Per Day
MSA Master Sale and Purchase Agreement
MW Megawatt
NBP National Balancing Point (United Kingdom)
NEPCO National Electric Power Company
RfP Request for Proposal
© 2015 Navigant Consulting (Europe) Ltd. Page III
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
Disclaimer
This Request for Proposal (RfP) has been prepared by Navigant Consulting (Europe) Ltd (Navigant) for the
National Electric Power Company of Jordan, to invite proposals for the supply of LNG to be delivered to
NEPCO’s import facility that will shortly be commissioned at Aqaba, Jordan.
Although the information contained herein has been obtained from sources believed to be reliable, NEPCO and
Navigant expressly disclaim any and all liability for incomplete or inaccurate information, or representations
expressed or implied, contained in, or omitted from, the RfP or any other written or oral or electronic media
communication transmitted or made available to any recipients of this RfP. NEPCO AND NAVIGANT
MAKE NO EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE COMPLETENESS OF
ANY FINANCIAL OR OTHER DATA CONTAINED HEREIN. NEPCO and Navigant also expressly
disclaim all liability, including, without limitation, liability for misrepresentation, negligence or otherwise
arising from any recipient's reliance upon the accuracy or completeness of the information contained in this
RfP.
Each recipient of this RfP must rely upon its own investigations and evaluations to establish its own
conclusions as to the merits of the opportunity. This RfP is provided for information only and is not intended to
be, and must not be, taken as the basis for any investment decision. In making an investment decision,
prospective Bidders must rely on their own examination of the opportunity including the merits and risks
involved.
This RfP must be treated in the strictest confidence and may not be used for any other purpose or be reproduced,
disclosed or distributed by any party receiving a copy to any other party without the express prior written
consent of NEPCO.
Prospective Bidders are not to construe the contents of the RfP as tax or legal advice. No professional, financial
or legal adviser or any Government authority identified herein or any other independent third party has
independently verified or advised on the accuracy or completeness of this RfP, the information presented herein,
or the applicable laws of any jurisdiction. Neither do any of the above assume any responsibility for the contents
of the RfP. Prior to making a bid for the supply of LNG, any prospective Bidder should consult with its own
legal, business and tax advisors to determine the appropriateness and consequences of bidding for the supply of
LNG.
The delivery of this RfP at any time does not imply that the information contained herein is correct at any time
subsequent to its date. NEPCO reserves the right to supplement or amend the information contained herein at
any time. Neither NEPCO nor its advisors have any obligation to update or otherwise revise any information in
this RfP including, without limitation, any projections, including any revisions to reflect changes in economic
conditions or other circumstances arising after the date hereof or to reflect the occurrence of unanticipated
events, even if the underlying assumptions do not come to fruition.
© 2015 Navigant Consulting (Europe) Ltd. Page IV
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
Table of Contents
Section A: Instructions to Bidders .................................................................................... 1
1. Overview of Tender Process ..................................................................................... 2
1.1 Introduction .................................................................................................................................. 2 1.2 Prerequisite for Bidding .............................................................................................................. 2 1.3 Bid Summary ................................................................................................................................ 2 1.4 Bid Timetable ................................................................................................................................ 3 1.5 Bid Instructions ............................................................................................................................. 3 1.6 Bid Requirements ......................................................................................................................... 9
Section B: Forms ................................................................................................................. 11
1. Bid Letter .................................................................................................................... 12
2. Confirmation Notice................................................................................................. 14
3. Form of Performance Guarantee ............................................................................ 15
© 2015 Navigant Consulting (Europe) Ltd. Page 1
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
Section A: Instructions to Bidders
© 2015 Navigant Consulting (Europe) Ltd. Page 2
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
1. Overview of Tender Process
1.1 Introduction
National Electric Power Company of Jordan (NEPCO) hereby invites bids for the supply of
Liquefied Natural Gas (LNG) to be delivered to NEPCO’s import facility in Aqaba, Jordan (a
Bid).
This RfP has been sent to all companies who have expressed an interest in supplying LNG to
the Terminal (each a Bidder).
1.2 Prerequisite for Bidding
On 2 April 2015, NEPCO issued a draft Master Sale and Purchase Agreement (MSA) for the
supply of LNG. Since that date, NEPCO has agreed a number of MSAs and is continuing to
negotiate with other parties to agree additional MSAs.
NEPCO will work with Bidders to execute an MSA prior to Bid submission. An MSA must
have been signed by a Bidder and received by NEPCO for a Bid to be considered.
Bids must comply with the Form of Confirmation Notice set out in Annex A of the Bidder’s
MSA.
1.3 Bid Summary
This RfP is being issued for the purpose of selecting a suitable LNG supplier to enter into an
Agreement, as defined in the MSA, to provide Jordan with LNG as detailed below:
Contract Requirements
Total Contract Volume One cargo of LNG
Delivery Timing 14 August 2015 through 17 August 2015
Delivery Point Al-Sheikh Sabah LNG Terminal, Aqaba, Jordan (the Terminal)
LNG is to be provided on a DES (Delivered Ex-Ship) basis
Delivered LNG Volume No greater than 151,500 m3
(i.e. equivalent to 160,000m3 LNG carrier)
Delivered LNG Energy 3.0 – 3.3 TBTU
Other Terms and Conditions As detailed in the MSA executed between the Bidder and NEPCO
© 2015 Navigant Consulting (Europe) Ltd. Page 3
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
More detailed requirements are set out as follows:
a. LNG specifications as provided in the Form of Confirmation Notice set out in Annex
A of the MSA (the Specifications);
b. LNG Ship specifications as provided in the MSA; and
c. Buyer's Facilities specifications as provided in the MSA.
1.4 Bid Timetable
RfP release date 07 June 2015
Deadline for NEPCO to receive MSA signed by Bidder 11 June 2015
Bid Submission Deadline 13:00 (Jordan time),
15 June 2015
Confirmation Notice executed by NEPCO No later than 18:00
(Jordan time)
on 18 June 2015
1.5 Bid Instructions
Bidders are required to submit binding Bids. Bids should comply with the following
requirements:
a. Compliant Bids
The documents comprising the bid shall consist of the following:
i. Bid Letter in the form set out in Section B1; and
ii. Confirmation Notice in the form set out in Annex A of the MSA signed by the
Bidder.
As noted above, NEPCO must have received a signed MSA from the Bidder no later
than 11 June for its Bid to be considered. Bids received from Bidders who have not
provided a signed MSA to NEPCO will be rejected.
b. Alternative Bids
© 2015 Navigant Consulting (Europe) Ltd. Page 4
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
Bidders may provide alternative Bids for the supply of LNG. For example,
alternative Bids may include a cargo Delivery Window lying partially outside the
relevant date range stated in 1.3 above. Alternative bids are not required to be in
compliance with the Bid requirements.
NEPCO will consider alternative Bids at its sole discretion.
c. Bidder Questions
Bidders may submit questions at any time up to five (5) days prior to the Bid
Submission Deadline.
Questions should be submitted by e-mail to:
with copies to
[email protected]; and
Copies of any questions and replies from NEPCO will be circulated to all Bidders,
though the identity of the Bidder asking the question will be kept confidential.
d. Amendment of RfP
At any time up to five (5) days prior to the Bid Submission Deadline, NEPCO may
amend the RfP by issuing an addendum.
Any addendum issued shall be part of the RfP and shall be issued in writing to all
Bidders.
e. Bid Submission
All Bids must be received prior to 13:00 hours local time in Amman, Jordan on 15
June 2015 (the Bid Submission Deadline).
Any Bid received after the specified date and time may be rejected, no matter what
the reason for the delay. It is the responsibility of Bidders to comply with the Bid
Submission Deadline.
f. Presentation of Bids
© 2015 Navigant Consulting (Europe) Ltd. Page 5
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
Bids must be submitted by e-mail. Bids submitted by facsimile, telex, telegram,
courier, mail, or personal delivery may not be accepted.
Bids should be submitted by e-mail to:
The subject of the e-mail should be: “Proposal for the Supply of Liquefied Natural
Gas”.
Bids are to be provided as signed PDF documents.
g. Bid Validity
Bids shall remain valid for a period of seventy-seven (77) hours after the Bid
Submission Deadline (Bid Validity Period). A Bid valid for a shorter period may be
rejected by NEPCO as non-responsive.
h. Clarification of Bids
To assist in the qualification, evaluation and comparison of the Bids, and ranking of
the Bidders, NEPCO may, at its discretion, ask any Bidder for a clarification of its
Bid, and provide a reasonable time for the preparation and submission of a response
from that Bidder. Any clarification submitted by a Bidder that is not in response to a
request by NEPCO shall not be considered.
No change, including any voluntary increase or decrease, in the prices of the Bid
shall be sought, offered, or permitted, except to confirm the correction of arithmetic
errors discovered by NEPCO in the evaluation of the Bids.
If a Bidder does not provide the requested clarifications of its Bid by the date and
time set in NEPCO’s request for clarification, its Bid may be rejected.
i. Evaluation of Bids
NEPCO will evaluate the Bids received and rank Bidders based on:
(i) Price including indexation mechanism (if any);
(ii) Delivery Window; and
(iii) Form and value of the requested credit support.
NEPCO will select the Bids that provide the required LNG volumes and energy
content at the lowest overall cost. The cost assessment will include price and other
commercially important contract terms as set out in the MSA (including the
Confirmation Notice).
© 2015 Navigant Consulting (Europe) Ltd. Page 6
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
NEPCO expects to provide credit support on a per cargo basis, and prefers to
provide a standby letter of credit from a Jordanian bank. The form of credit support
will be taken into account in the choice of the selected Bidder.
NEPCO reserves the right to accept or reject any Bid, and to annul the Bid process
and reject all Bids at any time prior to execution of the Confirmation Notice, without
thereby incurring any liability to Bidders.
j. Confidentiality
Information relating to the evaluation of Bids shall not be disclosed to Bidders or any
other persons not officially concerned with the Bid process, and the Bid ranking will
not be disclosed to Bidders.
Bids will not be publically opened.
k. Notification of Bid Results
Prior to the expiration of Bid Validity Period, NEPCO shall:
i. notify the selected Bidder in writing that its Bid has been accepted, sign the
Confirmation Notice by the deadline set out in 1.4 above, and issue this to the
selected Bidder; and
ii. notify each unsuccessful Bidder that its Bid has not been selected.
l. Performance Guarantee
No later than five (5) days before the start of the cargo Delivery Window, the
selected Bidder shall provide NEPCO with a US Dollar denominated performance
guarantee for an amount of ten percent (10%) of the cargo value, based on the
Contract Quantity multiplied by the Price Proposal, and issued by a bank in Jordan
(the Performance Guarantee) as security for NEPCO for the performance obligations
required by the MSA. Where the Bidder proposes a formula in its Price Proposal, the
value of the Performance Guarantee shall represent the Bidder's estimate of what ten
percent (10%) of the LNG cargo value would be, based on the LNG price at the time
of issuance of the Performance Guarantee. The form of Performance Guarantee is
attached at Section B3.
m. NEPCO discretion
NEPCO reserves the right to reject any or all Bids without assigning any reasons and
its decisions shall be final and binding. NEPCO will be under no obligation at any
time to select any Bid.
© 2015 Navigant Consulting (Europe) Ltd. Page 7
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
n. Cost of Bidding
The Bidder shall bear all costs associated with the preparation and submission of its
Bid, and NEPCO shall not be responsible or liable for any of those costs, regardless of
the conduct or outcome of the Bid process.
o. Language of Proposal
Bids and all related correspondence and documents shall be written in the English
language.
p. Currencies to be used in the RfP
The currency to be used in the Bid will be United States Dollars (USD). Bids not
using USD may be rejected by NEPCO.
q. Fraud and Corrupt Practices
NEPCO requires that Bidders, suppliers, contractors, consultants and concessionaries
(including their respective officers, employees and agents), adhere to the highest
ethical standards, and report to NEPCO all suspected acts of fraud or corruption of
which they have knowledge or become aware during the selection process. The
definitions of actions set forth below involve the most common types of fraud and
corruption but are not exhaustive. For this reason NEPCO shall also take action in
the event of any similar deed or complaint involving alleged acts of fraud and
corruption even when these are not specified in the following list. In pursuit of this
policy, NEPCO:
i. defines, for the purpose of this Article the terms set forth below as follows:
(aa) corrupt practice means the offering, giving, receiving, or soliciting,
directly or indirectly, of anything of value to influence the action of another
bidder or a NEPCO official, advisor or representative in the selection process;
(bb) fraudulent practice means a misrepresentation or omission of facts in
order to influence the selection process and includes collusive practice among
bidders (prior to or after the Bid Submission Deadline) designed to establish
indicative prices at artificial, non-competitive levels and to deprive NEPCO
of the benefits of free and open competition;
(cc) collusive practice means a scheme or arrangement between two or more
bidders, with or without the knowledge of NEPCO, designed to establish
© 2015 Navigant Consulting (Europe) Ltd. Page 8
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
indicative prices at artificial, non-competitive levels or to influence the action
of any party in the selection process; and
(dd) coercive practice means impairing or harming, or threatening to impair
or harm, directly or indirectly, persons or their property to influence their
participation in the selection process;
(ee) obstructive practice means deliberately destroying, falsifying, altering, or
concealing of evidence material to the investigation or making false
statements to investigators in order to materially impede a NEPCO
investigation into allegations of a corrupt, fraudulent, coercive or collusive
practice; and/or threatening, harassing or intimidating any party to prevent it
from disclosing its knowledge of matters relevant to the investigation or from
pursuing the investigation.
ii. will reject a Submission if it determines that the Bidder recommended for
award, or any of its personnel, or its agents, or its sub-consultants,
subcontractors, service providers, suppliers and/or their employees, has,
directly or indirectly, engaged in corrupt, fraudulent, collusive, coercive, or
obstructive practices in competing for this project or other projects in Jordan;
and
iii. will sanction a firm or individual, including declaring them ineligible, either
indefinitely or for a stated period of time, to be awarded a contract with the
Government of Jordan if it at any time determines that they have, directly or
through an agent, engaged, in corrupt, fraudulent, collusive or coercive
practices.
© 2015 Navigant Consulting (Europe) Ltd. Page 9
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
1.6 Bid Requirements
a. Volume Proposal
Bidders must demonstrate their capability to supply the volume they are bidding for.
Specifically Bidders should provide in their Confirmation Notice:
i. Delivery Timing
Bidder must specify a delivery window lying within the relevant date range
stated in 1.3 above (the Delivery Window).
ii. Volume Commitment
Bidder shall specify the contract quantity to be delivered in Btu (the Contract
Quantity).
iii. Shipping Commitment
Bidder shall specify the LNG Ship to be used for transporting the LNG.
Bidder is permitted to propose a delivered LNG volume up to the maximum
volume stated in 1.3 above. Note the Al-Sheikh Sabah LNG Terminal, Aqaba,
Jordan can accommodate LNG Carriers sizes up to Q-Flex.
iv. LNG Source
Bidder shall specify the LNG supply source(s).
v. LNG Specifications
Bidders must confirm that their LNG supply will conform to the
Specifications as set out in the Confirmation Notice.
b. Price Proposal
Bidders may propose either a fixed price or a price formula (the Price Proposal).
NEPCO will analyse the Price Proposals and choose the most advantageous, taking
account of the cost of NEPCO's alternative fuels (diesel and fuel oil). If Bidders elect
to propose a Price formula, linkage to Brent is preferred but NEPCO will also
consider linkage to other indices (e.g. Henry Hub, JKM or NBP). Where a Price
formula is proposed, Bidders are encouraged to provide a risk management
approach to help NEPCO to manage Price risk against its alternative fuels.
© 2015 Navigant Consulting (Europe) Ltd. Page 10
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
The Price Proposal should be presented net of all custom duties or fees, transfer
taxes, stamp duties and general and special sales taxes that are applicable within
Jordan. The liability for payment of taxes will be as set out in the MSA.
© 2015 Navigant Consulting (Europe) Ltd. Page 11
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
Section B: Forms
© 2015 Navigant Consulting (Europe) Ltd. Page 12
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
1. Bid Letter
[Name of Bidder and Address]
[Date]
H. E. Abdul Fattah Aldaradkah,
General Manager of the National Electric Power Company
National Electric Power Company
Jabel Amman – 7th Circle, Zahran Street
Amman, 11814
Jordan
Your Excellency,
Bid to supply Liquefied Natural Gas
We, the undersigned, declare that:
(a) we have executed a Master Sale and Purchase Agreement for LNG with NEPCO;
(b) we have examined the Bidding Documents, including any addenda, and have no
reservations;
(c) we hereby offer to supply LNG in conformity with the Bidding Documents in
accordance with the Confirmation Notice provided as part of our Bid;
(d) our Bid is valid for a period of seventy-seven (77) hours from the Bid Submission
Deadline and it shall remain binding upon us and may be accepted at any time before
the expiration of the Bid Validity, in accordance with the Bidding Documents;
(e) we are not participating, as a Bidder or as a subcontractor, in more than one Bid; and
(f) we understand and acknowledge that you are not bound to accept any Bid that you
may receive.
We hereby confirm that the information provided as part of our Bid is complete and
accurate and all necessary Board and other approvals have been obtained prior to the
submission of our Bid.
Yours faithfully,
Signed
Name
Duly authorized to sign the Bid for and on behalf of [name of Bidder]
Dated
© 2015 Navigant Consulting (Europe) Ltd. Page 13
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
© 2015 Navigant Consulting (Europe) Ltd. Page 14
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
2. Confirmation Notice
Bidders are requested to submit a Confirmation Notice in the form set out in Annex A of the
MSA signed by the Bidder and received by NEPCO.
© 2015 Navigant Consulting (Europe) Ltd. Page 15
Liquefied Natural Gas Supply – Request for Proposal Document Jordan LNG Project
3. Form of Performance Guarantee
[Date]
National Electric Power Company
Jabel Amman – 7th Circle, Zahran Street
Amman, 11814
Jordan
At the request of Bank (The Foreign Bank) and on
behalf of M/S. (The contractor Name and Address), we (The Local Bank)
issue in your favor our irrevocable and unconditional performance guarantee No.
in the amount of ( ) in this connection we
(local bank) hereby consider ourselves responsible for the unconditional payment to
you or your authorized representatives of the above sum on your first written demand in
whole or in part not withstanding any objections on the part of the above named contractor
and without any need for notarial warning or judicial proceedings.
This guarantee remains valid from the date of issue till its expiry date on
___________________________ unless it’s extended or renewed upon the employer’s request.
This Guarantee shall be governed by Jordanian law.
Yours faithfully,
Signed
Name
Duly authorised for and on behalf of [name of bank]
Date