IHI wins Mundra LNG storage tank bid

Vol 17, PW 3 (05 Sep 13) Midstream & Downstream

GSPC has made an in-principle decision to hire Japan's IHI to construct two LNG storage tanks at its proposed Mundra LNG terminal.

IHI was lead EPC contractor for construction of Petronet LNG’s Dahej LNG terminal, commissioned in April 2005. By the end of this month (September) GSPC LNG will likewise issue a LoA to IHI to build two 122,000-cubic metre tanks following a tender in January this year.

When price bids were opened last month (August) IHI quoted Rs900cr ($133m). Next was a consortium of Samsung and Doosan Heavy Industries quoting Rs920cr ($135m) followed by Taiwan’s CTCI quoting Rs930cr ($137m) and Italy’s Saipem quoting Rs1015cr ($149m).

Other bidders included Technip with China’s Huanqiu Contracting and Spain’s Tecnicas Reunidas with L&T. After awarding this contract, GSPC will finalise the contract for regasification facilities.

In June GSPC received bids from Toyo Engineering, IHI, CTCI, Technip and AFCONS. “By November we should award the contract for regasification facilities also,” adds a source.

IHI's selection is not the only way GSPC is copying Petronet-LNG. “We are following Petronet LNG’s model in letter and spirit,” adds GSPC.

“When we face a problem we refer to Petronet-LNG’s balance sheet during the Dahej construction.” But GSPC has no intention of selecting Petronet-LNG as 25% partner.

“Petronet-LNG is our competitor,” we hear. “We will certainly not give 25% to them.

They might not play fair if they get a cheap cargo and might divert it to Dahej.” GSPC (50%) shares the Mundra LNG project with Adani (25%).

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