Two BPCL tank jobs for Fabtech

Vol 19, PW 10 (28 Jan 16) News in Brief

Fabtech Projects & Engineers is set to win two Bharat Petroleum tenders to install LPG storage tanks.

When BPCL opened price bids on December 10, 2015 to set up three 1400 tonne onshore LPG storage tanks or 'mounded bullets' at Palakkad in Kerala, Fabtech bid lowest quoting Rs36.71cr ($5.4m) followed by GR Engineering Works at Rs54.62cr ($8m) and Sharp Tanks & Structurals at Rs58.13cr ($8.7m). BPCL will supply steel plates and the contractor must build and install the tanks within 10 months of the LoA.

On December 15, 2015 Fabtech bid lowest in a similar tender issued by BPCL's Assam subsidiary Numaligarh Refinery which wants four 1000 tonne LPG tanks. Fabtech quoted Rs56.70cr ($8.4m) followed by IndianOiltanking at Rs59.04cr ($8.7m) and GR Engineering Works at Rs89.09cr ($13m).

Initially Vijay Tanks & Vessels at Rs55.44cr ($8m) was set to win but after tax credits Fabtech's bid is Rs30,000 ($442) lower. The winner must install the tanks within 24 months of the LoA.