Punj Lloyd bags contract for IOC´s naphtha project

Punj Lloyd Ltd has announced that the Company has secured a contract for Indian Oil Corporation´s naphtha cracker project being implemented at its complex at Panipat (Haryana). The contract has come through Indian Oil Tanking Ltd, where the Company is the nominated sub contractor. The order is valued at Rs 349.73 crore on EPC basis and is the Company´s largest project for its tankage & terminal business.

The contract is for the offsite and storage facilities of its naphtha cracker project and the scope of work includes EPC of storage facilities, including double walled cryogenic storage tanks, storage spheres, mounded bullets, atmospheric tanks, vaporizers, heaters, BOG compressors, pumps and civil work including tank foundations. This is also the first contract for the company for mounded bullets and Horton spheres

The project is scheduled to be completed in 24 months with an additional 2 months for commissioning.

The award of contract is a reflection of confidence of the Indian Oil major in the capabilities of the Company in handling such an important task with ease. While the Company is known for construction of cryogenic tanks, this project, involving EPC work of double walled cryogenic tanks for storing ethylene at -103.6 deg C and propylene at -46.8 deg C temperature, represents a high end application of cryogenic storage system.

With this win, the order backlog for Punj Lloyd group (including Sembawang Engineers & Constructors, Singapore) is Rs 12,259 crore. This is the total value of inexecuted orders as on July 01, 2006 and new orders received till date. The group is now the second largest engineering and construction major in the country in terms of the order book. Over 60% of Punj Lloyd’s order backlog is now represented by projects based outside India.

Source : Equity Bulls

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