Petronet-LNG re-thinks Dahej LNG tank

Vol 19, PW 21 (30 Jun 16) News in Brief

Lack of competition is forcing Petronet-LNG to consider re-tendering for the single onshore LNG storage tank needed at Dahej to raise capacity to 17.5m t/y, according to contractors.

IHI is presently sole valid bidder after L&T was disqualified on technical and commercial grounds in May. "With just one bidder," says a source, "Petronet-LNG feels it won't get the best price." IHI's price bid has yet to be opened even though bids were submitted in March.

Most likely the delay in awarding the LNG storage tank tender will hit the project schedule for regasification facilities for which Taiwan's CTCI bid lowest quoting Rs360cr ($54m) when price bids were opened on April 27. CTCI confirms it is talking to Petronet-LNG and has yet to receive the LoA.

CTCI surprisingly beat Toyo Engineering which was far behind quoting Rs450cr ($67m). Toyo is already mobilised at Dahej to increase regasification capacity from 10m t/y to 15m t/y.

IHI is also presently mobilised at Dahej to set up two tanks to raise Dahej capacity from 10m t/y to 15m t/y.