Foster Wheeler evaluates Dahej bids

Vol 12, PW 10 (02 Oct 08) News in Brief

Foster Wheeler is evaluating bids received by ONGC for a 1.1m t/y ethylene cracker at Dahej that will process C2 and C3 extracted from R-LNG received at Petronet-LNG’s Dahej terminal, and also process naphtha received from Mangalore Refinery.

PETROWATCH learns that Linde (the holder of a process licence) along with EPC contractor Samsung offered the lowest quote at $1.5bn when bids were opened on September 23. The next highest quote came from another process licensor, Stone & Webster, in alliance with contractor Larsen & Toubro, which bid $1.62bn.

ONGC’s internal estimate is $1.55bn. Linde and Samsung should in theory get the contract as the lowest bidder but ONGC wants Foster to take a call on which process is more efficient.

“Whichever process is the most cost effective will be chosen,â€‌ we are told. ONGC wants the project completed within 48 months of the Letter of Intent and will retain Foster Wheeler until the award of the contract.

LNG Summit