Paradip petchem Package-2 for Punj

Vol 19, PW 1 (10 Sep 15) News in Brief

Unconfirmed reports suggest Punj Lloyd is set to win an IndianOil contract for secondary facilities at the 15m t/y Paradip refinery’s polypropylene unit - even though its quote was below IOC’s estimate.

Punj’s Rs368cr ($61m) quote for 'Package-2' of the 680,000 t/y polypropylene unit was the lowest of three bids when prices were opened on April 30. But Punj's quote was so far below IOC’s Rs550cr ($91m) internal estimate that many felt the tender would be scrapped and re-issued.

IOC has since verified and approved Punj’s quote, say sources. “IOC has informally told Punj,” we learn.

A Punj source said he is aware IOC has checked its quote but declines to divulge more while IOC said it can't comment on ongoing tenders. 'Package-2' includes a Coker LPG treater unit, cooling towers, warehouses and a flare system.

For 'Package-1' IOC issued a Rs2000cr ($333m) LoI to China Kunlun Contracting & Engineering on June 30 for completion by September 2017.