Toyo embarrasment as CTCI wins Dahej regas

Vol 19, PW 19 (02 Jun 16) Midstream & Downstream

What an embarrassing blow for Japanese firm Toyo! Everybody thought it was destined to win the contract to set up an additional Shell and Tube vaporiser facility for Petronet-LNG at Dahej because it is already mobilised working on expanding regas capacity from 10m t/y to 15m t/y.

Many didn't even bid because they thought there was no point with Toyo in the race. And now from nowhere CTCI of Taiwan is lowest bidder.

CTCI quoted Rs360cr ($54m) when Petronet-LNG opened bids on April 27 while Toyo was far behind at Rs450cr ($67m). By last week CTCI had not yet received the LoA but expects it by the end of this week.

How to explain CTCI's success? "We did a major cost-cutting exercise and cut out all the frills in our bid," reveals a CTCI source gleefully. "We wanted to win." When it receives the LoA this will be CTCI's first assignment in India after seven years.

"We won the tender to set up regas facilities at [Petronet-LNG's] Kochi LNG terminal," adds CTCI. "The project was completed in 2009 but could be commissioned only in 2013 because there was no gas." Petronet-LNG wants the additional Dahej regas facility set up within 36 months of the LoA.

Some wonder if there will be a similar surprise in the tender to construct one more Dahej LNG tank where IHI and L&T are competing.