Sener wins first LNG job in India with H-Energy

Vol 18, PW 5 (23 Oct 14) Midstream & Downstream
     

Less than two years after opening its office in Delhi Spanish engineering and construction firm Sener is basking in the glow of its first major EPC job in India: an estimated $550m contract to build an 8m t/y LNG terminal at Jaigarh on the Maharashtra coast for Mumbai-based Hiranandani Group.

Next month (November) Sener will work out the division of responsibility in its JV with local partner Afcons during a series of meetings, first in Madrid then Mumbai, ahead of a Notice to Proceed (NTP) expected by January 15 next year (2015). “Sener is lead partner with 51%,” says a source.

“Afcons is minority partner with 49%.” Actual construction of the 8m t/y terminal, designed to receive both ‘contract’ and ‘tolling’ cargoes, will take between 40-44 months, and be ready by mid to late 2018.

“Afcons will look after the bulk of local (Indian) procurement,” we hear. “Sener is responsible for global procurement, engineering, design, construction management and all technical-related activities.

” Analysts say Afcons inclusion in the JV is key to the relatively low $550m contract bid. “In Europe it would have cost much more,” adds a source.

“But Afcons can rationalise costs with local sourcing and manpower.” Another source adds: “On certain things like pumps, valves and tank materials there will be no compromise.

Sener will source these from global suppliers it has worked with in the past.”