Seven bid for IOC Ennore LNG regas tender

Vol 18, PW 9 (18 Dec 14) Midstream & Downstream

IndianOil is evaluating bids received on December 3 in its tender to set up ‘regas’ facilities at its proposed 5m t/y Ennore LNG terminal in Tamil Nadu.

Among the bidders was India veteran IHI, which built the regas facilities for Petronet-LNG at Dahej, and bid alone; newcomer Cobra Instalaciones y Servicios from Spain with Tecnimont; Mitsubishi Heavy Industries with Tata Projects, which hasn’t won anything in the LNG space; Taiwan-based CTCI with Cinda; Saipem with Larsen & Toubro; Toyo Engineering India; and Black & Veatch, another newcomer, with KazStroyService, a surprise choice of partner given its record. A note prepared for IOC directors on October 17 seen by this report reveals that when commissioned in 2017-18, IOC wants Ennore to supply R-LNG to most of Tamil Nadu (except on the Kerala border), southern Andhra Pradesh and southern Karnataka.

Hungry for gas, IndianOil predicts demand from power, fertiliser, refinery, petrochemicals and other industries will be 14.94m cm/d or 4.89m t/y in 2017-18, rising to 37.6m cm/d (9.73m t/y) in 2019-20 and 44.14m cm/d (11.4m t/y) in 2024-25. Despite these encouraging numbers, IOC is proceeding cautiously and in 2017-18 it plans to use just 30% of the terminal’s 5m t/y capacity, rising to 45% (2.25m t/y) the following year, 60% in 2019-20, 75% in 2020-21 and finally 90% (4.5m t/y) in 2021-22.