Punj confident it can win Haldia refinery work
Punj Lloyd has hit back at concerns that it has cash flow problem and says it has a good chance of winning the contract for one of the construction packages under IndianOil’s Rs2900cr ($470m) overhaul and upgrade of the 7.5m t/y Haldia refinery in West Bengal.
Expect the main competition to be between L&T, Essar and new entrant CTCI. “Punj could have also been a strong contender,” says a competitor.
“But it has cash flow problems.” A Punj source rubbishes this comment.
“Punj is one of the most serious contenders,” he says. “We’ve already completed the MSQ upgrade, and hydrocracker and hydrogen generation projects totalling Rs1600cr ($260m) for Haldia.
” He adds that in this fiscal Punj has won projects worth Rs10,000cr ($1.6bn) from Shell, Petronas and Kuwait National Petroleum, underlining its financial strength. “All EPC players are facing difficulties,” adds Punj.
“Cash flow is under pressure throughout the industry.” IOC held a pre-bid on September 26 for the Haldia EPCC-2 package attended by L&T, Punj, Essar Projects, CTCI, Uhde, Fabtech Projects, IL&FS, Technip, KazStroyService, Fernas Construction and Tecnimont.
Included in the EPCC-2 package is a 380 tonnes/hour Amine Treating and Regeneration Unit; a 60 tonnes/hour Sour Water Stripper Unit supplied by EIL; and an 80 tonnes/day Sulphur Recovery Unit to be licensed by Lurgi - together estimated by one bidder at around Rs600cr ($100m).