Ras Laffan-Mobil Frontrunners In Lng Bid Supply Bid

A consortium of Ras Laffan LNG Company of Qatar and Mobil LNG is emerging as the frontrunner for supply of liquefied natural gas (LNG) to Petronet LNG. Shell International of the UK is a close second.

The Ras Laffan-Mobil consortium has offered to supply five million tonnes of LNG at Dahej in Gujarat and 2.5 million tonnes of the gas at Kochi in Kerala. However, its offer for supply at Kochi depends on Petronet's acceptance of its offer for Dahej. The consortium seems to have taken the economies of scale into account while working out the price bid.

Petronet LNG had shortlisted seven companies for the supply of LNG at its two terminals. These included Petronas of Malaysia, Ras Laffan and Mobil LNG, Shell International, Total of France, Woodside of Australia, Pertamina of Indonesia, and Chevron of Australia.

 

Petronet LNG is expected to open the price bids shortly. A final decision on the award of the contract is expected only after the evaluation of bids.

The order for the supply of the gas is likely to be split between Ras Laffan-Mobil consortium and Shell International. Petronet LNG does not want to rely on a single supplier so that in case of disruption of supplies from one, the second can step in to meet short fall.

Petronet LNG has selected Gaz De France (GDF) as its strategic partner to assist and guide it in technical, commercial and project-related activities for the commissioning of the terminals at Dahej and Kochi.

Gaz De France is the largest importer of LNG in Europe. Four parties have been identified for setting up the two terminals for which land has already been allotted. The investment in the two terminals is expected to be around $12 million. Petronet LNG has initiated action to tie up resources for the project that will have an equity ratio of 7:3.