Cairn criticised over RGT expansion tender terms

Vol 18, PW 10 (15 Jan 15) Midstream & Downstream

Cairn India is under fire from contractors for setting an unrealistic 15-month completion deadline in a tender to add two new gas compression trains at the Raageshwari Gas Terminal (RGT) at RJ-ON-90/1 in Rajasthan.

“Cairn wants everything its way,” says a bidder. “It wants the contractor to build and assemble gas compressors and all the equipment at yards and to transport these to the site when ready.

Everything should be skid-mounted.” But, he adds, completing a job of this scale, and that too off-site, will take at least 21 months, not 15 as demanded.

Cairn received bids on December 22, 2014 from six contractors in its estimated $100m-$116m tender to increase RGT gas compression capacity from 930,000 cm/d (33m cf/d) to 2.8m cm/d (100m cf/d): Milan-headquartered Tecnimont, US-headquartered Black & Veatch, Germany’s Uhde Group, Taiwan’s CTCI, Mumbai-based L&T and Essar Projects. Bidders are also upset Cairn has not specified a firm date to open price bids.

“All it says is technical evaluation is going on,” says a contractor. In private Cairn blames partner ONGC for the delay in opening price bids.

“ONGC has a habit of delaying proposals,” says a Cairn source. “We hope they (ONGC) agree to open price bids this month (January).

” ONGC, when contacted, refused to comment.