Black & Veatch bags contract worth Rs 1600 crore from IOC

Company will take up EPC work at IOC's Rs 5500 crore LNG terminal near Chennai

Black & Veatch, a leading company in ‘concept to commissioning’ project solutions in the segments of power, oil & gas, water and telecom, has today announced that a consortium led by it with KSS Petron India, has won the contract for a new liquefied natural gas (LNG) terminal, which is being up set up by Indian Oil Corporation at  Ennore, near Chennai.

Black & Veatch will lead the engineering, procurement, construction (EPC) and commissioning work on a turnkey basis, and the plant is scheduled to be completed by 2018.

KSS Petron Pvt Ltd is company's consortium partner in the EPC contract.

Value of the contract is around Rs 1500-1600 crore without the taxes, t as a little over 30 per cent of the total Rs 5500 crore, total project cost.

Usually LNG terminal has 3 parts – Regasification, Tanks and Marine, company's contract is an EPC and commissioning for the regasification portion.

The contract is effective today and is expected to be commissioned by second quarter of 2018, said G Sathiamoorthy (Country Manager and MD, Black & Veatch India).

IOCL’s five million tonne LNG termina at Ennore will be the first-of-its-kind on India’s east coast. The regasification terminal paves the way for supply of LNG to high gas demand southern states, particularly Tamil Nadu and some parts of Karnataka and Andhra Pradesh.

A regasification terminal converts LNG from liquid back to gas so it can be supplied to customers such as power companies. India currently has four such terminals, all on the west coast.?          

The Ennore EPC project entails designing and building a facility to regasify five million metric tonne per annum (MMTPA) of tanker-borne LNG imported by IOCL.