Kochi LNG terminal new EPC tender deadline in June

Vol 10, PW 26 (03 May 07) Midstream & Downstream

Petronet-LNG has sent revised bid documents to EPC contractors short-listed for the $550m contract to construct a 2.5m t/y LNG terminal at Kochi.

This follows a series of proposed â€کamendments’ to the terms made by contractors and agreed by Petronet-LNG following a string of meetings in March. PETROWATCH learns the revised technical bid documents were sent on 20th April to three competing consortia led separately by Technigaz, IHI and Sofregaz.

Three days later on 23rd April, Petronet-LNG sent revised commercial bids to the three consortia. A decision to send the revised bids was taken following separate meetings between Petronet-LNG and the three consortia to resolve outstanding technical issues.

During the meetings, Petronet-LNG confirmed it would carry out a new soil investigation of the proposed location for the Kochi terminal in response to concerns from bidders. “When the soil investigation report comes in Petronet-LNG said it would send the data to all bidders,â€‌ reveals a source.

“Construction time and cost is likely to go up following the increase in piling.â€‌ Contractors believe any new soil investigation will conclude that piling for LNG tanks will be around 60 metres, more than earlier estimates of 40 or 50 metres, raising cost estimates and possibly leading to delays in terminal construction.

Both these issues are likely to be reflected in the new bids when submitted. Petronet-LNG has not given any deadline for submission of fresh bids but most expect it to be at the end of next month (June).

All three consortia first submitted technical and commercial bids for the terminal at Puthuvypeen Island on 31st January but Petronet-LNG later agreed with concerns by bidders about the soft soil conditions and agreed to carry out renewed investigation. In its original schedule Petronet-LNG wanted to award the EPC contract for Kochi by the end of last month (April).