Tata makes big entry in Barmer refinery project

Vol 23, PW 3 (28 Nov 19) Midstream & Downstream

Tata Projects has achieved its goal of breaking into the lucrative refinery construction business with three straight wins in tenders to set up Hindustan Petroleum's 9m t/y Barmer refinery and 2m t/y petrochemicals facility.

HPCL and project consultant Engineers India opened price bids on November 22 for the 3.5m t/y Vacuum Gas Oil-Hydrotreater Refinery Off Gas unit or EPCC-10. Unexpectedly, Tata bid lowest for CAPEX at Rs1315.50cr ($187m) followed closely by TechnipFMC at Rs1330.17cr ($190m) while Petrofac lagged behind at Rs1627cr ($232m).

Petrofac's participation ends uncertainty over whether it would be disqualified after one of its executives pleaded guilty to bribery charges in the UK. Tata also bid lowest for EPCC-4 or the 2.4m t/y Delayed Coker Unit and Unsaturated LPG Treating Unit for which HPCL opened price bids on November 21, quoting Rs2270cr ($324m) followed by Petrofac at Rs2318cr ($331m) and finally L&T at Rs2841cr ($405m) for CAPEX.

In EPCC-4, Petrofac’s OPEX numbers were not considered by HPCL because it made a major error quoting the value of proposed steam consumption in kg/hr instead of in tonnes/hour. Tata also bid lowest when HPCL opened price bids on November 20 for the EPCC-1 package to set up a 9m t/y Crude Distillation Unit and a 4.8m t/y Vacuum Distillation Unit.

Tata quoted Rs1746.90cr ($249m) while Toyo Engineering was close behind with Rs1794cr ($256m) followed by L&T at Rs2049cr ($292m) and Petrofac with Rs2173cr ($310m).