Gail (India) has received eight bids
for its global tender involving transport of CNG (compressed natural gas) from
Myanmar to the east coast of India.
Expressions of interest were received
from:
- Consortium of EnerSea Transport LLC
(USA), Mitsui and K-Line
- Consortium of TransCanada, and
others
- Knutsen OAS Shipping AS (Norway)
- Malaysia International Shipping
Corporation
- Consortium of Forbes Mumi Armada
(Malaysia), BMT Fleet Technology (Canada), Wilnemsen Marine Consultants
(Norway)
- Ardeshir B Cursetjee & Sons (India)
- Consortium of Marubeni Corporation
(Japan) and Sea NG Management Corporation
- Exmar Marine NV (Belgium)
Gail will now select an entity through
the international bidding process. Gail is in the process of floating requests
of qualification to the eight bidders who have responded.
This is the first instance that
natural gas is being shipped in the CNG mode. The quantum of gas in this case
did not justify the laying of pipelines. Further, should the LNG shipment route
have been employed, it would mean construction of re-gasification facilities in
India, and liquefaction facilities in Myanmar.
Background: Gail (India) it may
be recalled had make a gas discovery in the A-1 Block of Myanmar in January
2004. The block containing reserves of 7 tcf of gas was won by a consortium of
Daewoo International, Gail, ONGC Videsh and Korea Gas Co with respective stakes
of 60 per cent, 10 per cent, 20 per cent and 10 per cent. Production from the
block is expected to start in 2009. Gail had invited EOIs, bids for which closed
on 18 March 2006. Gail, in its tender notice, had asked applicants to consider
three possible scenarios of having to transport 28 mmscmd, 18 mmscmd and 10
mmscmd. Gail expects total production from the A-1 block to cross 10 tcf after
more exploratory work is conducted.
In November 2004, Gail
appointed Snamprogetti of Italy to study various options of transporting this
gas to India.