KRIBHCO planning gas tender for 1.5m cm/d

Vol 10, PW 16 (30 Nov 06) News in Brief

KRIBHCO is planning to float a tender for the supply of gas to its Hazira plant in Gujarat and its Shyam Fertiliser plant at Shahjahanpur in Uttar Pradesh.

PETROWATCH learns KRIBHCO will float the closed tender for 1.5m cm/d this week or next. We need this gas for the whole of 2007, reveals a KRIBHCO source.

First supplies should begin on 1st January 2007. KRIBHCO has set a provisional deadline to receive bids by 25th December and award the contract two days later.

Its unclear if KRIBHCO will break up the tender into parts or float a tender for the whole one-year term. Gas prices are already up because of winter, we hear.

If we sign a contract for a year at these prices and they come down in summer we will end up paying a higher price. KRIBHCO has floated seven gas tenders over the past two years vastly reducing its dependence on Naphtha.

GAIL, IOC, BPCL and GSPC, but not Shell, are all likely to bid. KRIBHCOs terms dont suit us, says a Shell source.