Petronet LNG Seeks EPC Contractor for Gangavaram Terminal

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Researched by Industrial Info Resources India (Delhi, India)--Petronet LNG Limited (BSE:532522) (PLL) (New Delhi), India's state-owned gas company, is scouting for a vendor to construct an on-land liquefied natural gas (LNG) import, storage and regasification terminal at Gangavaram, near Vishakhapatnam, on the coast of Andhra Pradesh.

The company has floated a global tender for engineering, procurement, construction (EPC) and commissioning of the LNG Terminal to qualify bidders for a lump-sum EPC contract for the project. According to PLL, the bid documents would be available for sale until May 31, 2013, while the deadline for submission of the bid is June 28, 2013.

The $900 million terminal is expected to go on stream by the first quarter of 2016. The terminal will have a total capacity 10 million tons per annum (MTPA); however, only 5 MTPA of capacity initially would be made operational to expeditiously cater to the growing demand of natural gas in Andhra Pradesh and in the neighboring states.

PLL and Gangavaram Port Limited (GPL) (Hyderabad, Andhra Pradesh) are setting up the terminal as a joint venture project. PLL and GPL signed a term sheet for developing the LNG Terminal at Gangavaram Port in May of last year.

Tractebel Engineering Limited (New Delhi) has prepared the detailed feasibility report (DFR) for the project, while Engineers India Limited (BSE:532178) (New Delhi) has been awarded the contract for front-end engineering and design (FEED) contract for the project.

Petronet already has a 10-MTPA operational LNG terminal at Dahej in Gujarat. The company also has planned to expand the capacity of the terminal to 15 MTPA by the end of 2015. PLL's LNG Terminal at Kochi is expected to be operational by July 2013.

Petronet LNG Limited was promoted by state-owned energy companies such as GAIL (India) Limited (BSE:532155) (GAIL) (New Delhi), Oil & Natural Gas Corporation Limited (BSE: 500312) (ONGC) (Dehradun, Uttarakhand), Indian Oil Corporation Limited (BSE:530965) (IOCL) (New Delhi) and Bharat Petroleum Corporation Limited (BSE:500547) (BPCL) (Mumbai) to import LNG and set up LNG terminals in India, with an authorized capital of $240 million.

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