Tata Projects bets big on Barmer EPC tenders

Vol 22, PW 21 (08 Aug 19) Midstream & Downstream

Until now Tata Projects has focused solely on upstream onshore oil and gas development projects but it's hoping to break into the downstream refinery construction business.

Bidding alone, Tata hopes to win three of 10 contracts to set up HPCL's proposed Rs43,129cr ($6.2bn) refinery and petrochemicals facility at Barmer. Very soon it's expected to bid for at least two more.

Tata's move follows an HPCL decision to open the field to EPC contractors from unrelated sectors on condition they hire an engineering sub-contractor with refinery, petrochemicals or fertiliser sector experience. "This is the first time we're bidding on our own for refinery projects," confirms a senior Tata source.

"We've been thinking about this for a while but no opportunity was available." HPCL received bids on June 11 for the estimated Rs1500cr ($215m) EPCC-1 package to set up a 9m t/y Crude Distillation Unit and a 4.8m t/y Vacuum Distillation Unit for the proposed 9m t/y refinery from Tata, L&T, Toyo Engineering and Petrofac.

The same companies also bid on July 8 for the 2.4m t/y Delayed Coker Unit and Unsaturated LPG Treating Unit or EPCC-4 while on July 31 Tata, TechnipFMC and Petrofac bid for the 3.5m t/y Vacuum Gas Oil-Hydrotreater Refinery Off Gas unit or EPCC-10. Tata is also expected to bid for the sulphur block or EPCC-6 and the Linear Low Density Polyethylene/High Density Polyethylene Swing unit and the Butene-1 unit or EPCC-8.