IHI and Toyo favourite for Dahej expansion

Vol 19, PW 7 (03 Dec 15) Midstream & Downstream

Petronet-LNG is vigorously denying claims that Japanese companies IHI and Toyo will inevitably win the contract to set up additional onshore LNG tank and regasification facilities at Dahej and is encouraging others to try their luck.

To attract more bidders, Petronet-LNG has even extended the deadline to buy tender documents from November 20 to December 21. “We want as many bidders as possible," says a senior Petronet-LNG source.

"Many bidders called us and said the tender sale window is too short." Yet some wonder if there is any point bidding to further increase Dahej capacity to 17.5m t/y with the addition of one more tank and 'regas' facilities with IHI and Toyo already mobilised on site and working to raise capacity from 10m t/y to 15m t/y.

“Petronet-LNG would not want anybody else besides IHI and Toyo for the job,” says a source at a company which plans to stay away. “The additional tank and facilities requirement follows on from the current expansion.

It makes sense to hire the same contractors.” Among those expected to give this tender a wide berth are Technip, Tecnimont, Black & Veatch and Tata Projects.

By contrast Punj Lloyd and Mitsubishi are expected to bid for both tank and regas components. Toyo is likely to be interested only in the regas while IHI is likely to bid only in the tank tender.