Despite Shell exit Kakinada FSRU plan on track

Vol 20, PW 7 (15 Dec 16) Midstream & Downstream

Despite Shell's exit, Andhra Pradesh Gas Development Corporation (APGDC) is forging ahead with work to set up its proposed 5m t/y LNG FSRU off Kakinada in Andhra Pradesh.

On December 2, APGDC extended the deadline in its tender to hire a Project Management Consultant from December 6 to January 11, 2017 at the request of bidders. Earlier the deadline had been extended from November 25.

"Many companies have shown interest," says an APGDC source. "We are aiming to award the contract in January (2017)." He adds eight to 10 companies attended the November 14 pre-bid in Hyderabad, among them Engineers India, Foster Wheeler, Worley Parsons, Technip and Poten & Partners.

Another company source adds that it has issued a tender to hire a FSRU for the project and will receive bids on January 13. Other relevant tenders will also be issued within the next one and a half months.

But our source refused to give details of the expected timeframe to commission the project. "Further decisions will be taken only after seeing the response to the tenders," he said.

"Our parent GAIL will be responsible for arranging LNG imports for the project." Separately a Shell source has confirmed to this report that it is no longer participating in the project. This is also confirmed by project partner GdF Suez even though there has been no formal announcement yet.

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