Petronet-LNG wants 2 more truck bays at Kochi

Petronet-LNG is throwing its weight behind the 'LNG-by-truck' model and adding two more truck loading bays at Kochi, encouraged by growing demand.

"The demand for LNG/gas is growing in southern Indian states," says a source. "After CGD-IX and CGD-X we need more truck-loading bays."

On August 9, Petronet-LNG held a pre-bid where it told bidders it wants the new bays by August 20 (2022). Whoever wins must set up the bays within 365 days of the LoA.

To qualify, Petronet-LNG wants Indian bidders to have a minimum annual turnover of Rs12cr ($1.6m) and the same amount in US dollars for any foreign bidder. One potential bidder expresses surprise that the tender issued on July 25 (2021) allows Original Equipment Manufacturers (OEM) to bid.

"This is the first time OEMs are allowed in such a tender," he claims. "This is a job for an EPC contractor, I don't understand what an OEM would do here, OEMs manufacture the equipment to set up a facility."

He adds EPC contractors will struggle to compete with OEMs which can quote low. "OEMs manufacture the products we install at the site," he says.

"There is no way we can compete, if we bid, we are sure to lose the tender cost and our deposit." He thinks Petronet-LNG might have allowed OEMs because it's a small project valued at around Rs12cr-Rs15cr ($1.6m-$2m).

"Maybe Petronet-LNG thought large EPC contractors wouldn't be interested?" he asks. Among the OEMs expected to bid are Japanese companies Tokyo Boeki, SMC Pneumatics and Thane-based Woodfield Systems.

Any non-OEM company that bids must have carried out at least one EPCC project involving an LNG truck loading facility or cryogenic LNG equipment designed for at least -160 degrees Celsius within the last seven years worth $1.6m, operational for at least one year before the bid deadline. For a full breakdown of LNG cargo arrivals to India, with landing prices and volumes, subscribe to the LNG Dipla database from Petrowatch.com