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This is an archive article published on July 19, 2005

Original contractors to finish DPC

Enron’s original contractors for the $2.96-billion Dabhol power project will complete the unfinished LNG terminal to restart the stalle...

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Enron’s original contractors for the $2.96-billion Dabhol power project will complete the unfinished LNG terminal to restart the stalled 2,184 MW plant by 2006.

GAIL, which has been mandated to source LNG (to be used as feedstock to fire the plant) and manage the LNG import and regassification terminal, has managed to reconstitute the original engineering, procurement and construction (EPC) consortia for completing the 75 per cent complete LNG terminal.

NTPC, which is to run the power plant, is roping in GE for completion of the 1,444 MW Phase-II of the project, a GAIL release said. The construction of the LNG terminal and 90 per cent complete 1,444 MW Phase-II were abandoned in June 2001, when the Dabhol project ran into contractual problems.

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Originally, Enron-affiliate Lingtec was awarded the main EPC contract for construction of the 2.5 million tonnes LNG terminal along with the marine facilities. Lingtec in turn awarded two EPC sub-contracts — regassification plant, tankage and utilities construction contract — to Norway’s Kvaerner and UK’s Whessoe and Punj Lloyd; and marine facilities comprising the jetty, approach channel and breakwater to Besix of Belgium and Kier of the UK.

‘‘The consortia would undertake completion of the balance work under the active supervision of two project management consultants being engaged in this regard,’’ GAIL said. Punj Lloyd has been maintaining the project since April 2002.

GAIL said the absence of engineering database of the project and issues related to the ownership of the IPR of the technical documentation of the project were major bottlenecks. ‘‘With the reconstitution of the consortia, these problems have been solved to a large extent,’’ it said. The company added that the terminal contractors are ‘‘generally satisfied’’ with the state of preservation of the facilities and the completion of balance work is targeted for July 2006.

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