Gail remakes EPC consortia for Dabhol

In a move towards early completion of the Dabhol LNG terminal, Gail (India) Ltd has reconstituted the original EPC consortia which will now undertake the remaining work at the plant, supervised by project management consultants.

National Thermal Power Corporation (NTPC) is also roping in GE for the completion of the power plant's facilities.

Gail has now got the EPC contractors back. Lingtec, an Enron affiliate, was awarded the main EPC contract for constructing the LNG terminal along with marine facilities. Lingtec had, in turn, awarded two EPC sub-contracts.

The first contract on regasification, tankage and utilities at the LNG terminal went to a consortium comprising Kvaerner and Whessoe, both of the UK, and Punj Lloyd Ltd.

The second contract pertaining to the marine facilities comprising jetty, approach channel and break-water was awarded to a consortium of Besix of Belgium and Kier of the UK.

When the construction work was abandoned in June 2001 after the project ran into contractual problems, the facilities were about 75 per cent complete.

Thereafter, Indian Lenders had engaged Tractebel of Belgium to assess the condition of the facilities and develop a preservation regime for the entire project. Punj Lloyd was, in April 2002, engaged to undertake preservation of the project facilities, and since then, this arrangement is continuing.

The absence of engineering database of the project and the issues related to the ownership of intellectual property rights of the technical documentation of the project were major bottlenecks in restarting construction activities, said a Gail communiqué.

"With the reconstitution of the consortia, these problems have been solved to a large extent," it said.

Gail says, new EPC contractors do not feel inclined to undertaking jobs lying abandoned for four years and also guarantee the performance of the same, therefore, the earlier contractors are best suited to complete the work.

Terminal contractors are generally satisfied with the state of preservation of the facilities and the remaining work is targeted to be completed by July 2006.

The Drama

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• The facilities were about 75 per cent complete when construction work was abandoned in June '01
• Lingtec, an Enron affiliate, was awarded the main EPC contract for constructing the LNG terminal
• Issues related to the ownership of intellectual property rights of the technical documentation were major bottlenecks in restarting construction