BP and Reliance 'too professional' for GSPC
GSPC is meeting EPC contractors for the proposed 5m t/y Mundra LNG terminal even as it fast loses interest in BP and Reliance joint venture India Gas Solutions (IGS) as preferred strategic partner.
GSPC met IHI on March 20 and Toyo Engineering on March 21 to discuss site activities and contractual liabilities with a view to beginning work on the ground from April 1. But this is delayed by a month until contractors submit insurance and industrial risk policy documents for materials and manpower.
In a surprise about-turn GSPC now prefers IndianOil as its potential strategic partner over former favourite IGS. Why It seems IGS is too particular about following global practises.
“IGS keeps asking for documents on project progress," complains a GSPC LNG source. "They want us to draft the commercial contract terms in their favour according to international standards for insurance, bonus shares and payment.
" GSPC is also irritated that IGS wants to pay its equity share in instalments linked to project progress. In the meantime, IOC has been aggressively pressing its case to take 25% in a series of telephone calls to GSPC.
“We definitely want to be a partner at Mundra and are following it closely,” says an IOC source. IGS declined to comment.