Clock starts ticking for IHI at Kochi

Vol 11, PW 19 (07 Feb 08) News in Brief
     

Any doubts about Petronet-LNG’s commitment to the proposed 2.5m t/y receiving terminal at Kochi will be dispelled by news that it has formally awarded the contract for construction of two onshore LNG storage tanks to IHI of Japan.

PETROWATCH learns IHI received notice of its award to build two tanks of 185,000 cubic metres capacity each on February 1. “The clock began ticking for IHI on February 1,â€‌ confirms Petronet-LNG.

“They will have to hand the tanks to us within 42 months.â€‌ Press reports that Petronet-LNG will pay $250m for the two tanks are firmly denied by IHI.

“The contract is worth much more than that,â€‌ said IHI, declining to reveal a number. Adds Petronet-LNG: “We are very happy with the price.

It compares very favourably with current global prices.â€‌ Also on February 1, Petronet-LNG awarded a contract to AFCONS to raise the level of the LNG terminal site at Puthuvypeen Island by three metres using 1.4m cubic metres of soil.