As many as eight contractors are looking to qualify for a tender covering expansion of Petronet LNG’s Dahej import terminal in Gujarat.
The operator plans to lift regasification capacity from the current 10 million tonnes per annum to 15 million tpa.
Japan’s IHI Corporation and Toyo Engineering, Korean giant Samsung, Italy’s Saipem and Tecnimont, UK-based Whessoe, Technip from France and Indian engineering major Larsen & Toubro have thrown their hats in the ring, according to sources close to the tendering process.
The engineering, procurement and construction work scope has been divided into two packages. The first covers regasification facilities and the second two new LNG storage tanks. Nine contractors are in the race for the tanks job, sources said.
“The eight players who have submitted qualification bids for the regasification facilities are also in the race for the LNG storage tanks, said one. “The addition is India’s Punj Lloyd.”
Petronet is currently evaluating pre-qualification bids and the exercise is likely to be completed very soon, another source added.
“In a week or two the qualification of contractors should conclude, after which Petronet will float tenders for both (tender) packages to the qualified players,” the source said.
IHI and Toyo are seen as leading contenders. “IHI has previously executed jobs for Petronet LNG on the Dahej and Kochi import terminals,” a market observer said, adding that Toyo is one of the strongest players in the sector.
To qualify for the regas tender, a contractor must have successfully completed a similar EPC contract for a terminal with a minimum capacity of 2.5 million tpa.
Those vying for the storage tanks will need to have successfully completed an EPC contract for tanks of a minimum 120,000 cubic-metre capacity.
The Dahej expansion forms part of an overall growth programme at Petronet, which has plans to boost regasification capacity to 25 million tpa by 2016 to meet surging gas demand in India.
The company is also pursuing LNG terminals at Kochi in Kerala and Gangavaram in Andhra Pradesh.
Kochi is due on-stream shortly with a capacity of 5 million tpa while Gangavaram is being tendered now. The 5 million tpa facility has a target start-up date of 2016.