IOC poised to award Ennore LNG contracts

Vol 18, PW 20 (04 Jun 15) Midstream & Downstream

Good things come to those who wait.

Mitsubishi has certainly waited long enough so must be pleased as it prepares to walk away, yet again, with the LNG storage tank construction contract for IndianOil’s proposed 5m t/y Ennore LNG terminal, after the last tender, where it was also lowest bidder, was scrapped in March. A consortium of US-based Black & Veatch and KazStroyService will also be celebrating as it is finally set to win the contract to build regasification facilities.

PETROWATCH learns IOC’s Board reviewed a proposal to award the EPC contracts for LNG storage and regasification facilities at its last meeting on May 29. A well-placed source confirms IOC directors have approved the proposal.

“The meeting's minutes have yet to be signed,” he says. “So it is not yet 100% confirmed.

But in all likelihood IOC will issue LoAs for these two tenders this month (June) itself.” In the fresh storage tank tender where IOC opened price bids on April 29, Mitsubishi quoted $167m against the $177m it quoted last time.

IHI quoted $171m against the $187m it quoted last time. These Japanese companies were the only bidders.

Mitsubishi is likely to sub-contract much of the work to Punj Lloyd. In the regasification facilities tender, where IOC opened price bids on May 5, Black & Veatch and KazStroy quoted Rs1450cr ($227m).

Taiwan-based CTCI with partner Cinda came second with Rs1700cr ($266m).