Hualu favourite for Haldia contract

Vol 20, PW 17 (18 May 17) News in Brief

Keen to enter the Indian market, Chinese contractor Hualu Engineering & Technology is believed to have bid lowest in IndianOil's tender to set up a 1.2m t/y diesel hydro-treater to remove sulphur from diesel at its 7.5m t/y Haldia refinery in West Bengal.

Hualu is competing with L&T and Technip. All three bid by IndianOil's extended April 25 deadline.

Hualu's quote is believed to be between Rs450cr ($70m) and Rs475cr ($74m) while L&T is believed to have quoted Rs495cr ($77m). Technip is believed to have quoted between Rs500cr ($78m) and Rs550cr ($86m).

None of these estimates could be independently confirmed. IOC and project consultant Engineers India are racing to evaluate technical offers as they are under pressure to meet the government's April 1, 2020 target to begin producing low sulphur Euro-VI grade fuel.

"Two sets of queries have been sent and responses have been received," says a source. "A third set of queries went out on May 1; bidders had till May 4 to respond." Some say Hualu's price is too low.

IOC wants the hydrotreater set up in 24 months.