Fairy tale Chhara LNG terminal inches forward

Vol 19, PW 5 (05 Nov 15) Midstream & Downstream

Once a fairy tale, contractors are waking up to the possibility that a proposed Rs5411cr ($830m) LNG regassification terminal at Chhara on the Gujarat coast promoted by refiner HPCL and the Shapoorji Pallonji (SP) Group will become reality.

A snap poll by this report among contractors likely to bid for either the EPC or PMC contracts reveals a growing sense of confidence. “HPCL has a good track record,” Tecnimont tells us.

“They’ve been talking about this project for a long time so if there’s an EPC tender we’d be interested in bidding.” So too would SP Group company Afcons.

“If we are asked to do the job, we’ll do it,” says Afcons. “Or if there’s a tender we will bid.

” Black & Veatch, IHI, Sener and Tata Projects are equally enthusiastic, all confirming interest. Yet confusion centres on the consortium’s plan to issue EPC tenders first, possibly by December or January, followed by a PMC tender in mid-2016.

“Logically the PMC tender comes first, followed by the EPC tender,” says Tractebel, a potential PMC bidder. “For projects this size the PMC company manages the EPC contracts and on-site construction.

It’s possible they will first only pre-qualify EPC contractors by inviting EoIs and then tender for a PMC.” Whatever the timetable, unless and until the district collector’s office in Junagadh district allots a date for the mandatory public hearing all talk of tender dates is academic.

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