L&T lowest for Barauni refinery CDU-VDU contract

Vol 22, PW 8 (07 Feb 19) News in Brief

Larsen & Toubro (L&T) has emerged lowest bidder in IndianOil’s ongoing tender to hire an EPC contractor to set up crude and vaccuum distillation units (CDU and VDU) at the Barauni refinery in Bihar, whose capacity is being raised from 6m t/y to 9m t/y.

When price bids were opened on February 4, say sources, L&T was lowest at Rs2100cr ($291m) while Petrofac was far behind at Rs2800cr ($388m). Bids were sent in on November 5 by just L&T and Petrofac even though IOC and consultant Toyo Engineering had qualified TechnipFMC and Tecnimont as well.

Industry sources say it will be nearly a month before L&T gets the LoA from IOC, after approval by the company’s board. L&T had hired Aker Solutions in Mumbai to do the pre-bid engineering before it submitted the bid.

State-owned Engineers India will provide technology for the CDU and VDU. L&T is expected to use its coastal Kattupalli yard near Chennai to manufacture the large columns and other oversized equipment that make up the CDU and VDU and transport them by sea most likely to Haldia and then to Barauni by land.