GSPC to invite PMC bids for Mundra LNG project

Vol 15, PW 14 (26 Jan 12) Midstream & Downstream
     

GSPC is preparing a tender to hire a Project Management Consultant (PMC) for its proposed 5m t/y Mundra LNG terminal, jointly promoted with Adani Gas.

PETROWATCH learns GSPC’s fully-owned subsidiary GSPC LNG is likely to issue the tender soon after its board meets later this month (January) to approve the Mundra project timeframe and proposed capital expenditure. Belgium’s Tractebel stands a good chance of winning the contract as it prepared the FEED report for Mundra, submitted in late 2010.

GSPC is believed to have paid Tractebel nearly Rs50cr ($9.7m) for the FEED contract, which apparently contains a clause saying Tractebel’s services could be ‘extended’ to cover the PMC assignment too. But, says a well-informed source, GSPC does not want Tractebel as the PMC.

“GSPC believes Tractebel has too many assignments on hand in India and is spreading itself too thin,” he says. “It’s worried Tractebel cannot do justice to the Mundra project, and is balking at Tractebel’s high asking price.

” GSPC insiders say it received a “phenomenal” response to its December 19 notice inviting EoIs from EPC companies for the estimated Rs4500cr ($836.4m) Mundra terminal. Around 35 companies sent in EoIs by the January 16 submission deadline, among them Samsung, which might bid alone or with CTCI; Toyo; IHI; ABB with WorleyParsons; AFCONS with Saipem; KOGAS with Hyundai; Punj Lloyd; and, Technimont with Sofregaz.

“Some companies who submitted individual EoIs might still form partnerships,” we hear. “So the total number of bidders is likely to fall.

Nonetheless, it’s a massive response and indicates industry approval for GSPC leading the project (and not Adani which was traditionally seen as project leader).” GSPC holds 75% stake in the Mundra project while Adani holds 25%.