One month bid extension for fourth Dahej LNG tank

Vol 9, PW 14 (20 Oct 05) Midstream & Downstream

Petronet-LNG has extended by a month to 15th November the deadline to receive technical and commercial bids for the fourth LNG tank at Dahej.

The original deadline was 15th October, but Tractebel sought a months extension. Tractebel will most likely not bid but we cant refuse when they ask for more time, Petronet-LNG tells us.

Even with the extension, continues a source, there will be no delay because Petronet-LNG has not yet confirmed a source for its additional LNG. If we begin work now we will be early, we learn.

Petronet-LNG is constructing a third and fourth tank, additional vaporisers and external piping to double Dahej capacity to 10m t/y. The contract for the third tank has already been awarded to IHI of Japan, the original EPC contractor for Dahej.

IHI has already begun design work for the third tank, we are told. It is not clear who will be hired by IHI to construct the tank.

But it will most likely be an Indian company. Petronet-LNG also needs two LNG tankers to feed Dahejs increased capacity and is identifying a shipping consortium to supply the tankers on time charter.

Separately, Petronet-LNG hopes to award the EPC contract for its 2.5m t/y LNG terminal at Kochi in Kerala by 31st March. Already awarded are contracts for preliminary activities such as land filling and construction of a helipad.

Land has to be filled up to two metres thick to make the site ready, we are told. Petronet-LNG has short-listed contractors for Kochi and the tenders will ready by next month (November).

Simultaneously, Petronet-LNG is also evaluating bids received from shipping consortia to charter one LNG tanker for Kochi. The size of the tanker is yet to be frozen, we learn.

Thatll depend on the source of the LNG. The various possible tanker sizes and configurations have already been worked out.

Once the source is finalised the consortia will be informed of the tanker size. Laying of a foundation stone for the Kochi LNG terminal by PM Manmohan Singh has been postponed from 1st November to the first week of December.