Petronet Rushes With Bids For Dahej

Petronet LNG has invited global pre-qualification bids for project management consultants for its Dahej regasification terminal, even before receiving necessary clearances or entering into any sales agreement with consumers.

Petronet LNG - promoted by Bharat Petroleum Corporation Ltd, Gas Authority of India Ltd, Indian Oil Corporation and Oil and Natural Gas Corporation - is still awaiting the coastal regulatory zone (CRZ) and environmental clearance from the Gujarat government. This clearance is vital for its project in the state.

The Dahej terminal is expected to have a capacity of five million tonnes per annum. It will also have associated storage and marine facilities.

Although Petronet LNG has signed a memoranda of understanding (MoUs) with some consumers of liquefied natural gas (LNG), no formal agreement has been signed. In the absence of a formal sales agreement, the consumer can opt for any other LNG supplier. Industry circles are surprised that this fact has been overlooked by Petronet LNG. They say the company may be committing heavy investments in the project without being certain about its future.

In its notice, Petronet LNG has said the project's lumpsum turnkey engineering, procurement and construction (EPC) contractor was expected to commence work by July 2000. The project is scheduled to be completed by July 2003.

The notice says the bidder for the project management consultant contract should be a reputed engineering and consultancy organisation with experience in design and engineering in an LNG liquefaction plant or regasification terminal of a minimum capacity of 2.5 million tonnes per annum. The project must have been successfully commissioned during the last 15 years.

The bidder should also have experience in construction supervision, project management and quality control activities in at least one hydrocarbon project worth not less than $200 million during the past 10 years, the notice says.