Nickel steel costs worry Kochi bidders

Vol 10, PW 23 (22 Mar 07) News in Brief

EPC bidders for the Kochi LNG terminal contract have asked Petronet-LNG to factor in the soaring cost of nickel steel.

“All bidders are going to submit new price bids for Kochi when the soil investigation is complete,â€‌ says a source. “The price of nickel steel will become the base price.

Any difference between the prices quoted at the time of bid submission and the prices when the order is placed will be paid by Petronet-LNG.â€‌ Over the past year nickel steel costs have soared from $26,000 to $36,000 per tonne.

Bidders expect Petronet-LNG to agree the request. “All the bidders made this (nickel steel) request.

â€‌ Petronet-LNG met the IHI-led consortium on 1st and 2nd March. On 12th and 13th March it met the SN Technigaz led consortium and on 15th and 16th March it met the Sofregaz consortium.