H-Gas invites EPC bids for LNG terminal at Jaigarh

Vol 17, PW 4 (19 Sep 13) Midstream & Downstream

Some doubt the project will ever see the light of day but Hiranandani Gas Company (H-Gas) is forging ahead with a tender to build its proposed 8m t/y LNG terminal at Jaigarh in Maharashtra.

H-Gas, a newcomer to the LNG sector, expects to receive EPC bids by October 31. Likely bidders include UK-based Whessoe with Punj Lloyd, Italian companies Tecnimont and Saipem, Germany's TGE Gas Engineering, Samsung Engineering, Taiwan's CTCI and Spain's Tecnicas Reunidas.

Technip and Japan's Toyo Engineering were earlier said to be interested but didn't submit EoIs by the July 20 deadline. "H-Gas has been quick in floating a tender for the project," says a likely bidder.

Usually companies evaluate EoIs for at least a month. But just four days after it received EoIs, H-Gas told all contractors they were qualified on July 24.

H-Gas issued the EPC tender on August 7, selling tender documents for Rs1 Lakh ($1600). H-Gas, a subsidiary of Hiranandani Group known for its sprawling baroque-style residential and commercial complexes in north Mumbai, has invited bids to build two 190,000 cubic metre LNG storage tanks, allied regasification facilities, LNG receiving facilities, and marine facilities.

H-Gas held a pre-bid in Mumbai in end-July. "They also met each contractor individually," adds another bidder.

"(H-Gas promoter) Darshan Hiranandani sat through meetings to reinforce his intent to go ahead." At the pre-bid, contractors complained about the confidentiality agreement.

"They want confidentiality for five years," laments a source. "Usually it’s six months.