IndianOil invites EoIs for LNG storage tanks at Ennore

Vol 16, PW 7 (18 Oct 12) Midstream & Downstream

Any doubts about IndianOil’s determination to set up a LNG receiving and re-gasification terminal at Ennore on the Tamil Nadu coast can be laid to rest.

Contractors predict India’s largest state-owned refiner will publish one of the first and largest EPC tenders for the proposed 5m t/y facility by the year-end. This follows publication on September 26 of an invitation to submit EoIs from contractors who can build two 160,000-cubic metre capacity LNG storage tanks.

EoI papers are on sale till October 19 and IOC wants companies to respond by October 25. “IOC might extend the deadline (for EoIs) by a week or two,” speculates a bidder.

“My feeling is they will issue the EPC tender by December or January.” In the unlikely event all runs smoothly, he predicts IOC will award the estimated Rs1500cr ($300m) contract by next April.

“Building LNG storage tanks takes the most time, around 36 months,” adds IOC. “That’s why we’ve invited bids for the LNG tanks first.

” Likely bidders include Japan’s IHI and Toyo Engineering; Taiwan’s CTCI; South Korea’s Samsung; and Italy’s Saipem. “IHI and Toyo have worked extensively at Dahej,” adds IOC.

“They can bid competitively.” Like Petronet-LNG, IOC is planning separate bids for storage tanks, re-gasification units, and marine facilities.

Separate EoIs for re-gasification and marine facilities are expected next month (November). Later this month (October) IndianOil is expected to appoint a consultant to supervise the EPC contracts.

Among those interested are Engineers India (EIL), Foster Wheeler, Fluor Daniel, Tractebel and Gas Natural Fenosa. All submitted bids for the Rs30cr ($6m) contract on June 1.

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