LNG terminals are set to come up in a big way as the domestic production of natural gas has failed keep pace with the demand. However, many foreign EPC contractors who were eyeing these big-ticket projects are in for disappointment due to the criteria for pre-qualification for building LNG terminals. At per the current norms, the bidding entity should have the experience in the past 10 years of setting up at least one project covering engineering, procurement, construction, project management and commissioning. But the foreign players argue that credentials of parent company of any interested entity should be acceptable for fulfillment of experience criteria for pre-qualification requirements for LNG re-gasification terminals and not the bidding entity itself which can be a subsidiary or adjunct of the company that has the experience.
As per the present norms for an entity to be considered for construction of an LNG terminal, a “construction experience” in India on a hydrocarbon project of value not less than Rs. 100 crore is required. Foreign players complain that despite having a partner who meets the construction experience requirements, the main bidding entity is still required to show past construction experience on a similar project to qualify which is a difficult proposition.