Don't doubt Mundra LNG will happen

Vol 16, PW 11 (13 Dec 12) Midstream & Downstream

GSPC has given a nice Christmas present to bidders in its $300m tender to build LNG storage tanks for the proposed 5m t/y LNG terminal at Mundra.

PETROWATCH learns GSPC and Gautam Adani-controlled Adani Group joint venture GSPC LNG decided on December 3 to extend the bid deadline from December 21 to January 22 (2013). “We extended the deadline after requests from many bidders,” says a GSPC source.

“It is a large tender so it will be technically difficult to prepare the bids. Besides, most of the foreign bidders will take 15 days holiday during Christmas and New Year.

” Twelve companies, he adds, attended the pre-bid at GSPC’s Gandhinagar office on November 21: Japanese companies IHI and Mitsubishi Heavy Industries; Korean companies Samsung Engineering, Samsung C&T and Doosan Heavy Industries; Taiwan’s CTCI; China Huanqiu Contracting and Engineering or HQC; Italy’s Saipem; France’s Technip; and India’s Punj Lloyd and Afcons. “We expect five to six companies to submit technical and price bids,” adds GSPC.

Once bids are in, GSPC plans to evaluate them within two months. “Contracts to build LNG tanks should be awarded by April,” we are told.

Separately, GSPC has set a mid-January target to issue a tender to build regasification facilities at Mundra. Expect the following to bid: Technimont L&T, Techint with Essar, and Punj Lloyd with Fluor Daniel, Technip, Toyo Engineering, Posco with Fernas, Linde and KazStroy.

GSPC will issue a separate tender to build marine facilities to berth LNG ships by end-March.