Uncertain response for coal-chemicals tender
Despite its $1.4bn value, Bharat Coal Gasification & Chemicals (BCGCL) can expect a poor response to tenders for its coal gasification to chemicals project in Odisha.
An industry source doubts BCGCL will receive a good response, given the delayed status of similar tenders issued by state-owned Neyveli Lignite (NLC) for a project in Tamil Nadu. "Some potential bidders (for the BCGCL project) are not sure if this project will come up or if it will meet the same fate as the NLC project," he stresses.
Coal India and Bharat Heavy Electricals (BHEL) joint venture BCGCL has extended the bid deadline in the LSTK-2 tender to purify 180,000 cubic metres/hour of syngas derived from coal from October 24 (2024) to December 20 (2024). BCGCL aims to open technical bids on December 21 (2024) after inviting offers on May 30 (2024).
However, BCGCL has not extended the deadline for two other tenders under the Rs11,782.05cr ($1.4bn) project planned at Lakhanpur in the northwest part of Odisha. Under LSTK-3, which involves setting up a 920 t/d ammonia synthesis facility, BCGCL aims to receive bids on November 11 (2024) and to open technical bids on November 12 (2024).
Under LSTK-4, the project aims to produce 1650 t/d of nitric acid and 1600 t/d of ammonium nitrate at a melt plant where it is concentrated and 400 t/d at a prill plant for conversion to solid pellets. Bids are due on November 13 (2024), and BCGCL plans to open technical bids on November 14 (2024).
BCGCL issued tenders for LSTK-3 and LSTK-4 on June 14 (2024). Promoter BHEL will carry out LSTK-1 using in-house technology to convert high ash coal to 84,377 cubic metres/hour of syngas.
Our source believes Italy's Maire Tecnimont might bid for LSTK-2 with technology from Linde; LSTK-3 is likely to see bids from Toyo Engineering and Tecnimont with technology from KBR; and Tecnimont might bid for LSTK-4, with technology from Spain's Espindesa, Switzerland's Casale or Germany's thyssenkrupp. Some argue that LSTK (Lump Sum Turnkey) is a misnomer because BCGCL wants the contractor to provide technology, like in LEPC (Licensing EPC) tenders.
Meanwhile, NLC is expected to open the price bid of sole bidder Maire Tecnimont under its LEPC-2 project this month (October 2024). LEPC-2 seeks to produce 1200 t/d methanol for an estimated Rs1500cr ($214m) from lignite or brown coal gas.