Oil India wants new LPG facility in Assam

Vol 16, PW 4 (06 Sep 12) Midstream & Downstream

Oil India is this week (September 6 and 7) meeting consultants interested in winning a contract to do a feasibility study for a proposed new LPG recovery facility at Duliajan in Assam.

Around 10 companies are expected to attend the pre-tender meeting in Guwahati, among them Engineers India, L&T Chiyoda, Projects and Development India, Kavin Engineering, Ethical Energy Petrochem, Technip KT, Triune Energy, Punj Lloyd, and ILF Consulting. All submitted EoIs to Oil India on April 2 for the estimated Rs5cr ($1m) consulting assignment.

“None of them qualified,” says an Oil India source. “Most of them didn’t submit proper documents; we are not sure they have the right experience.

” After answering queries during the Guwahati meeting, Oil India says it will float a tender to hire the consultant for this new 5m cm/d LPG extraction facility that will produce 120,000 t/y LPG and 55,000 t/y condensate. By December this year it wants to announce the winner.

Expected to take six months to complete, the feasibility study will detail the facility’s technical specifications, and those of an adjacent LPG bottling facility. Sales of condensate and other value added products by road will also be covered.

“Whoever wins must also identify a construction site,” adds Oil India, “and estimate the project cost.” After receiving the feasibility report, six months will be needed for internal Oil India approvals before announcement of a FEED or EPC tender.

“Construction should take between two to three years,” says a source. “It should be ready for commissioning by end-2016.