L&T/Whessoe join Dhamra LNG tank bidder list

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

Adani's casual approach to tenders for its proposed 5m t/y Dhamra LNG terminal in Orissa is confusing bidders more in tune with strict state-owned company procedure.

In its invitation for offers to set up two 180,000 cubic metre onshore storage tanks, L&T with Whessoe joined the race by the extended November 30 deadline after Japanese companies IHI and Mitsubishi already sent in technical bids by the original October 21 deadline. For the regas facilities where no bidders had responded by the original October 21 deadline three companies are now believed to have responded by the extended November 30 deadline: CTCI with Cinda; Black & Veatch; and L&T.

Still unclear is if L&T is bidding with Chiyoda or Saipem or both. What some might find bizarre is that even now Adani is open to receiving more bids for regas facilities and expects Tecnimont to also bid.

A source explains Adani is more interested in getting the best deal than sticking to arbitrary self-imposed deadlines. Toyo Engineering meanwhile has surprisingly stayed away so far from the regasification facilities tender.

Some speculate this is because it has payment problems with Adani over some engineering work carried out at its Mundra LPG terminal. "The amount involved is quite small," says a source.

"Around Rs15cr to Rs20cr ($2.2-3m)." He blames the poor response to the Dhamra tenders on fears that companies won't get paid on time.