Tata favourite for $142m CPCL contract

Vol 25, PW 4 (27 Jan 22) News in Brief

Mumbai-based Tata Projects will most likely bid aggressively to win an EPC contract to set up and commission a 2.5m t/y Delayed Coker Unit (DCU) for IndianOil subsidiary Chennai Petroleum's (CPCL) proposed new 9m t/y refinery at Nagapattinam.

Unless CPCL extends the deadline, bids are due by January 31 (2022) for this estimated Rs1000cr ($142m) project, where CPCL issued the tender on December 1 (2021). Most believe the competition will be between Tata Projects, Megha Engineering and Petrofac.

All three plus L&T, Afcons and Toyo Engineering participated in a pre-bid organised on December 23 (2021) and a site visit arranged by CPCL on December 10 (2021). Tata Projects is expected to bid "aggressively" as it has almost no new hydrocarbon sector orders, other than the DCU and Unsaturated LPG Treating Unit projects it won in November 2019 for HPCL's upcoming 9m t/y Barmer refinery in Rajasthan, where it quoted Rs2270cr ($324m).

"Megha might also bid aggressively," adds a well-placed source, "to add to the long list of (domestic) refinery projects it already has." Petrofac is another likely aggressive bidder, as it has no significant contracts in India's hydrocarbons sector.

L&T, Toyo and others are not seen as aggressive bidders as they have several domestic hydrocarbon sector contracts. McDermott-owned Chicago Bridge & Iron Company is the project management consultant for the DCU tender; Chevron Lummus Global will provide the technology.