Tractebel DFR proposes two sites for Mundra terminal

Vol 12, PW 10 (02 Oct 08) Midstream & Downstream

On September 15, two weeks before it despatched letters inviting presentations from LNG sourcing consultants, GSPC received a draft detailed feasibility report from consultant Tractebel for the Mundra LNG import terminal.

“It is now being demystified and analysed threadbare,â€‌ a GSPC source tells us. “Unit cost per million tonnes seems comparable with today’s norms.

â€‌ Tractebel projects Phase-I of the Mundra terminal to have a LNG import and regassification capacity of 6.5m t/y and cost Rs3600cr ($900m) to build. In addition, Tractebel is proposing two locations for the terminal, both within the Mundra port and Special Economic Zone area operated by the Adani Group, which is GSPC’s partner in the LNG project.

“Both locations are good,â€‌ adds our source, “but the first location is better for future terminal expansion.â€‌ One problem with the first location is that much land needs to be reclaimed from the sea and dykes built.

“Doing all this could take between three to six months,â€‌ he adds. The second location is just 500 metres away and needs less work in comparison, but this site is unsuitable for future expansion.

Tractebel is expected to submit the final detailed feasibility report to Mundra promoter GSPC by November 15. If the DFR is accepted, GSPC and partner Adani will select a contractor to prepare a Front End Engineering and Design report.

“We are now debating whether the FEED contract should be awarded on nomination to a reputed company or through a limited tender to select companies,â€‌ says GSPC. “The advantage of nomination is that we can save about six months time which will be required for the tender process.

But since the FEED contract itself could cost around $100m it seems unlikely that our board (at GSPC LNG) will go without a tender.â€‌ GSPC expects any FEED study to be awarded in mid-December and completed within a year.

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