Dabhol dredging

Vol 15, PW 2 (28 Jul 11) News in Brief

Hyderabad-based Dharti Dredging & Infrastructure has won the contract to dredge the shipping channel of the revived LNG import terminal at Dabhol operated by Ratnagiri Gas.

PETROWATCH learns the GAIL-NTPC joint venture sent a ‘Fax of Intent’ to Dharti on July 19, confirming the assignment to scoop out 5m cubic metres of silt and loose rock from the sea bed by February 2012 so LNG tankers can start berthing from March 2012. Ratnagiri will pay Dharti Rs170cr ($37m), down from the original bid of Rs180cr ($40m) but higher than its internal estimate of Rs161cr ($35m).

“We negotiated the price down from their original bid,” reports a source. Dharti is expected to mobilise dredgers and begin work on location after September when monsoon rains end along the west coast and the Arabian Sea calms down.

Belgium’s Dredging International was the only other bidder for this contract but was rejected as it wanted several “commercial deviations” from the original tender.