Marching ahead at Dahej for first LNG to India

Vol 6, PW 6 (22 May 02) Midstream & Downstream

Talk to Petronet-LNG about its Dahej project and the enthusiasm is infectious.

We learn for example that Petronet-LNG has marked 30th May as a key milestone. On this day Daewoo Shipbuilding and Marine Engineering begins cutting steel for the first of two tankers to transport LNG to its 5m t/y plant at Dahej.

Plans are on to lay the keel a month later. The first tanker will be ready well before the December 2003 deadline, the second a year later.

Another important milestone is 10th July when construction teams at Dahej hope to lift the roof of the first LNG storage tank. Three weeks later they'll raise the roof of the second tank.

"After we lift the first roof we'll begin the difficult job of building the inner tank," reveals a source. "Then we'll install the insulating material." Ditto for the second storage tank.

"About 80% of the outer wall for the second tankis already built." Any delays or concerns "None. We are on time.

All the long lead items have been ordered." i.e.

the nitrogen generation package, flare stack package, sand filter package, air drier package and the air compressor packages. Last month Petronet-LNG ordered the regassification terminal heat exchanger, pumps and valves.

Work is also on to finalise the instrumentation and control systems. Separately, New India Assurance Company and United India Insurance Company have been appointed lead and co-insurer respectively for Dahej and have issued an interim Comprehensive Project Insurance Policy and Marine Cargo Policy.

Petronet LNG is now looking for policies to cover "advance loss of profit" and "delayed start-up".