Hiranandani in talks for Jaigarh EPC contract

Vol 17, PW 25 (31 Jul 14) Midstream & Downstream
     

Hiranandani is shortlisting EPC contractors to set up its proposed Jaigarh LNG terminal despite industry concern over its ability to secure $1bn funding.

Darshan Hiranandani, managing director Hiranandani Group, tells this report discussions are underway with two consortia, one of which will be selected “in two weeks.” Hiranandani, best known as the property developer behind a Baroque Italian-style township in Powai, a Mumbai suburb, held talks for a week in early July with a consortium of AFCONS and Sener Engineering.

A week later Hiranandani met Tecnimont and partner Punj Lloyd. “Clarifications are being sought (from both consortia)," says Hiranandani.

"If everything is sorted out we should open price bids in two weeks.” Hiranandani is aiming to give the winner "notice to proceed" in October this year (2014) and wants the 8m t/y terminal set up in 40 months so commercial operations can begin in 2018.

Huanqui Contracting & Engineering with Turkish partner Fernas also bid in January but wasn’t shortlisted. Jaigarh will be a merchant terminal, where LNG cargoes pay a 'toll’.

It will start with two onshore LNG tanks each of 190,000 cubic metres net capacity with the option of a third similar sized tank. In two weeks Hiranandani plans to begin detailed discussions with nine companies bidding to be the project management consultant.

LNG Summit