Toyo and IHI favourites for Dahej new capacity

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

Japanese companies IHI and Toyo Engineering appear so certain of winning tenders to raise Dahej capacity by 2.5m t/y to 17.5m t/y that other companies are wondering if they should bother bidding.

Petronet-LNG issued two separate tenders on October 21 to add a cryogenic tank and the other to set up regasification facilities, together estimated to be worth around Rs1000cr ($152m). Tender documents are on sale until November 20 but IHI and Toyo are clear favourites with both already on site at Dahej expanding capacity from 10m t/y to 15m t/y: IHI is constructing two more tanks; Toyo the regasification facilities, with both aiming to complete work by November 2016.

“IHI and Toyo are already mobilised at the site so there’s no point wasting time (responding to the tender),” says a source at a company qualified to bid. “They’ll be very competitive, we won’t be bidding, I'll be shocked if anybody wins other than those two.

” A Petronet-LNG source adds the cryogenic tank will be 177,000 cubic metre capacity - the same as each of the two tanks under construction by IHI. “We have enough land to accommodate this additional tank and facilities,” he said.

Among those qualified to bid to set up the tank on their own are Mitsubishi Heavy Industries (MHI) and Punj Lloyd. Larsen & Toubro, Technip and AFCONS can bid as part of a joint venture.