Tuesday, 9 September 2014

India’s Punj Lloyd bags Petronas’s RAPID Farm job worth US$581m

India’s Punj Lloyd Group, a specialist in engineering, procurement and construction (EPC) services, yesterday announced the winning of a massive US$581 million Petroliam Nasional Bhd’s (Petronas) Refinery and Petrochemical Integrated Development (Rapid) Tank Farm project in Pengerang, Johor.

The announcement squashes talks of several big boys bandied to be potential beneficiaries for the job including SapuraKencana Petroleum Bhd, Naim Holdings Bhd and Benelac Holdings Bhd.

In a filing to Bombay Stock Exchange (BSE) yesterday, Punj Lloyd said the company won a mega Rs.3,515 crore (US$581 million) Rapid Tank Farm order from PRPC Refinery and Cracker Sdn. Bhd, a subsidiary under Petronas.

Punj Lloyd's Managing Director and Group CEO J.P. Chalsani in a statement to BSE said Punj Lloyd is privileged to be part of the Rapid project.

“Our expertise in tankage is recognised globally with our greatest advantage being our in-house engineering skill and extensive project experience of large scale tank projects," he added.

With this win, he said Punj Lloyd Group's order backlog reaches Rs 24,649 crore, adding that the order backlog is the value of unexecuted orders on June 30, 2014 plus new orders received after that date.

The company said the scope of contract includes project management, design, engineering, interface with other contractors and third parties, procurement, construction, inspection and testing, pre-commissioning and commissioning.

Punj Lloyd also pointed out that the Rapid Tank Farm will be a critical project requiring expertise in the construction of different types of tanks including storage tanks, LPG tanks, mounded bullets, light cracked naphtha storage, transfer pumps and additive packages.

The Tank Farm which is being developed within a 6,242 acre site, is part of the colossal Petronas Pengerang Integrated Complex (PIC) development, along with RAPID's associated facilities including the Pengerang Co-generation Plant (PCP), re-gasification terminal 2 (RGT2), air separation unit, raw water supply project, crude and product tanks (SPV2) and central and shares utilities and facilities (UF), it noted.

PIC forms part of the Johor State's Pengerang Integrated Petroleum Complex (PIPC), which is under Malaysia's Economic Transformation Programme (ETP) to establish new engines of growth for Malaysia' whilst meeting future energy requirement and strengthening Petronas' position as a key player in the Asian chemicals market, focusing on differentiated and specialty chemicals.

PIC will involve an estimated investment of US$27 billion and is poised for its refinery start-up by early 2019.

According to Punj Lloyd’s website, the group is an engineering and construction group in India providing integrated design, procurement and project management services for energy and infrastructure sector projects. - The Edge Daily Malaysia