Coming soon - three Panipat refinery tenders

Vol 24, PW 18 (29 Jul 21) Midstream, Downstream, Renewables

Megha Engineering's spate of refinery tender victories will have other bidders anxiously watching as IndianOil prepares to release tenders for a diesel hydrotreater and a vacuum gas oil hydrotreater at its Panipat refinery.

IOC is preparing tenders for three units to raise capacity from 15m t/y to 25m t/y at the refinery in Haryana, near a historic 1526 battle site allowing Mughal commander Babur to lay the foundations of his Indian empire. A contractor in regular touch with IOC tells us he expects the Rs1300cr ($175m) EPC tender to set up a 5m t/y diesel hydrotreater unit to remove nitrogen and sulphur impurities from diesel to be out next month (August 2021).

He adds companies likely to bid are L&T, Tata Projects, Technip, Megha Engineering, Tecnimont, Toyo Engineering and Petrofac. Hyderabad-based Megha, which attended the pre-tender meeting on June 10 (2021), has already bid lowest for seven IOC and HPCL refinery projects worth Rs13,135cr ($2.06bn), as we reported on July 15 (2021).

Whoever wins this contract must set up the diesel hydrotreater unit in 30 months with three months for commissioning. In August, IOC is also preparing a tender to set up a 3.6m t/y vacuum gas oil hydrotreater to improve the quality of vacuum gas oil used as feedstock in petrol and diesel production.

Axens is the licensor for the Rs 1500cr ($200m) project where likely bidders include L&T, Tata Projects, Technip, Megha Engineering, Tecnimont, Toyo Engineering, Petrofac and thyssenkrupp. Expected in September is a pre-tender meeting for a 3.3m t/y residue hydrocracking facility to process heavy feedstock to maximise diesel production.

"IOC initially held the pre-tender meeting in December 2020," says a source. "But because of changes to the tender terms, they will do it again."

All three tenders are clubbed together under the EPCM-1 package for which IOC awarded the project consultant job to Engineers India in April 2019.