Construction of Shell's LNG terminal begins in June

Vol 5, PW 6 (09 May 01) Midstream & Downstream

Shell blames Indian government lethargy in awarding environmental clearance as the main reason for delay behind start of construction work at its Hazira LNG project.

This report learns Shell is set to award the contract for "preliminary civil works" by the end of May and that it will begin work at Hazira in June. "The only reason construction did not start earlier was that we needed environmental clearance by end January 2001 to hit the construction window before this year's monsoons," reveals the company.

"We got the environmental clearance on 2nd March, 2001 - i.e.

too late. We are now gearing-up for a post-monsoon start on marine activities." We learn independently that Shell received five EPC bids but has only pre-qualified three companies.

Shell reckons it is ahead of Petronet-LNG in the race to get its terminal up and running. "IHI (the Japanese contractor hired by Petronet-LNG) is presently undertaking detailed design for Dahej," adds Shell.

"This is something we finished for Hazira in December 2000." According to Shell, work at Hazira will proceed as follows. Preliminary civil works Land reclamation for the LNG terminal Construction of the LNG tank Other aspects of the construction programme, such as construction of the jetty and the regasifiers, are expected to fit in around the above.

Project management is being carried out by a Shell team on behalf of Hazira Port Private Limited and Hazira LNG Private Limited, both 100% Shell-owned companies, incorporated on 11th October 2000 in Gujarat to execute the project. Shell Global Solutions is leading the team, which includes Howe India and "direct hire staff".