Eight compete for Ennore LNG terminal FEED

Vol 15, PW 2 (28 Jul 11) Midstream & Downstream

Many will be surprised to hear the long-proposed Ennore LNG terminal project has finally taken off after nearly a decade of inaction.

But some criticise IndianOil’s decision to bar the contractor which wins the Ennore FEED tender from participating in any EPC tender for the LNG terminal. “This FEED contract is small compared to the estimated $800m worth of EPC contracts which IOC will award to construct the Ennore terminal,” we learn.

Eight companies are competing to win a FEED contract for IOC’s proposed 5m t/y LNG terminal. IOC received technical and price bids on July 6 in its estimated Rs25cr ($5.5m) tender from French companies Sofregaz and Technip, Foster Wheeler, US-consultant Black and Veatch, Belgium’s Tractebel, UK-headquartered Whessoe, Australia’s Worley Parsons and Engineers India (EIL).

“IOC will meet each company to get clarifications on the technical bids,” explains an industry source. “Based on these meetings, it could change the technical specifications for the contract in line with suggestions made by bidders and issue an ‘addendum’ to the tender.

” If IOC’s new technical specifications deviate drastically from its original tender terms then bidders can submit revised price bids before IOC opens them in August. IOC wants the selected contractor to carry out detailed engineering and design work for three LNG storage tanks, each with a storage capacity of 160,000-cubic metres.

The winning contractor must also study the location and design of Ennore’s proposed LNG regasification facilities and the ‘marine facilities’ for LNG tankers to berth. “IndianOil has identified a potential site for the jetty,” we hear.

“But it wants the contractor to carry out geotechnical studies and suggest an alternate jetty site.” Preparing a FEED report is expected to take the selected contractor up to eight months.

LNG Summit