Torrent surprises with 36-cargo LNG tender

Vol 20, PW 19 (15 Jun 17) Midstream & Downstream
     

Torrent Power surprised LNG suppliers on June 9 with a tender for not just nine LNG cargoes but 36 over three years.

Less than three months earlier (on March 21) Torrent had sent out a notice indicating it wanted just nine cargoes for calendar year 2018 under Phase-II of a plan to receive 38 cargoes by 2021. But it has torn up those earlier plans, done away with phases, and decided to go ahead with a tender for 36 cargoes, each of 140,000 cubic metres, delivered between January 1, 2018 and December 31, 2020.

Only those who signed a Master Sale Purchase Agreement are eligible to bid by the June 30 deadline. Expected to bid are all LNG suppliers and traders who have signed an MSPA with Torrent.

Unlike its March 21 notice, Torrent no longer has a clause saying it might divert cargoes to a destination outside India. But it has kept its options open about where in India the cargoes will be delivered with the flexibility to nominate either Hazira, Dabhol, or Kochi as delivery destination by giving 30 days notice.

"Torrent is trying to play it safe in case it has problems at Dahej," comments a source. "But why would it bring in cargoes at Dabhol or Kochi?" Dabhol shuts during the monsoon every year from May to October and Kochi is stranded without any R-LNG evacuation pipelines.