GSPC invites offers from consultants to source LNG

Vol 11, PW 25 (01 May 08) Midstream & Downstream
     

GSPC is looking for a consultant to help it source LNG from global markets for a proposed third LNG import terminal in Gujarat.

On April 19, GSPC issued a half-page advertisement in The Economist calling for the “services of qualified, experienced and competent (LNG procurement) consultants/consulting firms.â€‌ Selected consultants, said GSPC, should have “sufficient knowledge, experience and qualified manpower.

â€‌ Those interested can submit Expressions of Interest within 30 days to managing director DJ Pandian. GSPC said it has formed a Special Purpose Vehicle GSPC LNG Ltd to set up a Greenfield (new) LNG regassification terminal in Gujarat and would like to source LNG for this terminal.

Contacted by this report, Pandian said a consultant was being hired because “the global LNG market is not very transparent (and) we need help in procuring LNG.â€‌ Pandian said the proposed import terminal at Mundra would be the destination of the LNG.

“Right now we are going ahead with Mundra,â€‌ he said. “We don’t expect to get LNG (for Mundra) from a single source.

LNG will come from various sources. This is why a consultant’s is needed.

â€‌ It is becoming increasingly difficult, says Pandian, to depend on a single source for all the LNG requirements of an import terminal. “Our idea is to bring more and more LNG to India through Gujarat from wherever it is available.

â€‌ GSPC wants the consultant to: Identify possible (existing and upcoming) gas liquefaction projects, quantities available and the time frame for supply of LNG Introduce and assist GSPC to commence discussions with potential LNG suppliers Assist in commercial negotiations with identified suppliers to secure long term LNG supplies Assist in the finalisation and signing of term sheets and heads of agreement and LNG sale and purchase agreements Assist in procuring spot, short term LNG and the finalisation of short term LNG supply contracts One of the most important tasks of the consultant, admits Pandian, will be to assist GSPC in, “identification of opportunities to participate in upstream LNG projects to secure long term LNG supplies.â€‌