Toyo wins 're-gas' tender for Dahej expansion

Vol 17, PW 12 (30 Jan 14) Midstream & Downstream

Petronet-LNG is the latest company to receive good news from the environment ministry's Expert Appraisal Committee (EAC).

This report learns the Rs2950cr ($479m) expansion of Dahej from 10m t/y to 15m t/y won EAC clearance in mid-January and will now go to oil minister Veerappa Moily who will consider it in his additional role as environment minister. "All approvals are in place," confirms a senior Petronet-LNG source.

"Only Moily's signature is pending. This shouldn't be a problem, he likes us.

" On location meanwhile Petronet-LNG is busy with EPC tenders for the expansion. Last week it opened price bids received back in May 2013 in its EPC tender to build re-gasification facilities.

Toyo Engineering was lowest bidder quoting $124m, followed by CTCI with $137m, IHI with $159m, Technip with $179m and Samsung Engineering with $226m. "Toyo and CTCI were aggressive," says Petronet-LNG.

"The LoA will be issued to Toyo next month or in March." Petronet-LNG has yet to issue a LoA to IHI, which was lowest bidder last September, when price bids were opened in a tender to build two LNG storage tanks, each with an 180,000 cubic metre capacity.

IHI quoted $160m. "We haven't issued the LoA to IHI because we don't have environmental clearance," says Petronet-LNG.

"It will be done once Moily signs the clearance file."