Only 4 likely bids for Hazira-LNG expansion

Vol 19, PW 8 (17 Dec 15) News in Brief

Shell and Total are likely to receive just four bids to increase capacity from 5m t/y to 7m t/y at Hazira under an estimated Rs1800cr-Rs2200cr ($282m-$345m) project.

Bids were originally due on November 20 but the deadline was extended to December 21. Industry sources expect bids from Saipem with L&T, IHI with Toyo Engineering, Sener with AFCONS and Punj Lloyd with Mitsubishi Heavy Industries.

Shell and Total have also prequalified Chicago Bridge & Iron with Linde; Tecnimont with Cobra and KOGAS; and Technip with China Huanqui Contracting and Engineering. But these companies are unlikely to bid.

"Our management decided not to pursue Indian projects as the risks are too high," says a source who asked not to be named. All prequalified companies attended the Hazira pre-bid on September 10 and carried out site inspections.

Punj with Mitsubishi is the frontrunner as it set up the original 2.5m t/y Hazira terminal. But expect strong competition from Toyo with IHI.