Latest Indian Chemical and Petrochemical News I News Breaks I

News & Bulletin Updates

Jul 08, 2025: Bio-CNG sounds green, but it’s burning through profits

8High tech costs, long gestation, and operational complexity are turning early bio-CNG bets into margin traps.

Jul 08, 2025: Announcements from our Oil & Gas Portal

8McDermott awarded offshore contract by Brazil's BRAVA Energia [McDermott]
8PNGRB invites bids for authorization of DKPL ATF pipeline from Devangonthi to Kempegowda International Airport fuel farm under Regulation 5 [PNGRB]
8Monthly CGD progress report – as on 31.05.2025 [PNGRB]
8Annual report 2024–2025 [Sealmatic]
8Intimation regarding deduction of tax at source on dividend [Afcons]
8ESG rating by Crisil ESG Ratings & Analytics Ltd. [ATGL]
8Board of Selan Exploration takes note of NCLT-sanctioned scheme of arrangement with Antelopus Energy at meeting [Selan]
8Notification for ROU acquisition in Tamil Nadu for Irugur–Devangonthi pipeline project by BPCL [Gazette]

Jul 08, 2025: Jhansi District City Gas Distribution Project

8Project Name: Jhansi District City Gas Distribution
8Project Cost: Rs 250 crore Click here for more details

Jul 08, 2025: Today's update in E&P, Midstream-Downstream & CGD sector

8Here's what's happening today in the E&P, midstream-downstream, and CGD section

Jul 08, 2025: Downstream contracting briefs: Part III

Big three enter the ring: Sphere Package draws elite tank fabricators
8GR Engineering, Sharp Tanks, and Vijay Tanks bring heavyweight EPC muscle to BPCL’s sphere package—raising the stakes in a contract defined by strict qualification norms.
HPCL tender filters one bidder out as it seeks multi-disciplinary design input for Anantapur LPG revamp
8A 4-bidder race ends with one disqualified as HPCL structures its consultancy scope for LPG capacity augmentation through hybrid deployment and milestone-based payouts. Will this model foster control or create coordination lags?
Risk lens narrows: BPCL limits QRA bid to in-house vendors, 50% disqualified in evaluation
8BPCL’s limited vendor policy on its duplex AFC risk study has already sidelined half of the competing bidders. Is quality control the motive—or controlled competition?
QRA bid for Gujarat Refinery: Only 3 of 11 bidders clear technical bar amid IOCL’s deep-dive safety mandate
8IOCL’s ambitious QRA/CRA scope for Gujarat Refinery demands high pedigree—yet only three out of 11 bidders cleared the technical round, reflecting how stringent experience and process safety credentials are becoming a structural filter.
AS Cooling lands BPCL Kochi tower package with 42% price edge: Margin stress visible across bids
8A sharp 33–42% price delta between L1 and L2 raises red flags about sustainability, even as AS Cooling clinches 3 of 5 BoQs. With BoQ5 awarded separately, vendor strategies show signs of tactical cherry-picking and undercutting.
Tight margins, wide gaps: HAZOP study tender shows intense undercutting at the top
8In IOCL’s HAZOP consultancy tender, Wire Consultancy clinched L1 by quoting 22% below the estimate — just a whisker ahead of iFluids. But a 5x spread between L1 and L6 suggests pricing chaos, margin mismatches, and uneven market understanding among bidders.
Low-bid consultancy win at Paradip triggers pricing alarm: 158% spread raises margin questions
8With a 158% gap between L1 and L2, IOCL’s Paradip refractory consultancy award exposes pricing tensions in limited tender scenarios. Future bids may see more scrutiny on cost realism.
Thermax wins PDH heater package with 22% price edge: EIL’s aggressive tendering puts L2 and L3 far behind
8Thermax Babcock & Wilcox Energy Solutions has clinched the fired heater package for PLL’s PDH unit, quoting Rs. 277 crore—undercutting L2 by a striking 22%. A sharp price spread raises questions on risk loading and margin appetite across the board.
Tight race for MRPL gas compressor sees Siemens edge out Burckhardt by 1.7%
8Only two bids cleared the bar for the Bio ATF plant’s recycle gas compressor package, with Siemens clinching the deal at Rs. 18.29 crore. The narrow 1.74% price spread hints at well-benchmarked costing and leaves little room for margin play.
Single bidder wins Dahej land and GMB coordination tender amid 75% disqualification rate
8HPCL’s twin-scope service tender at Dahej closed with only one valid bidder. The awarded price of Rs.10.8 lakh points to either deep local familiarity—or a possible margin squeeze.
Heat Exchanger Tender Cracked at Rs. 6.5 Lakh: 40x Undercut Raises Risk and Reliability Questions in Dahej PDH-PP Project
8A heat exchanger tender for the PDH-PP project at Dahej saw the L1 bidder quoting just Rs. 6.5 lakh — a shocking 40x lower than the typical range of Rs. 2.7–4.7 crore from other bidders. The pricing spread raises concerns of scope mismatch, predatory bidding, or systemic evaluation gaps.

Jul 08, 2025: E&P Contracting Brief for the day

ONGC puts LTSOBM bidders under twin stress: Rajahmundry fluid services scope ups compliance heat and inventory risk
8In a tightly scoped 3-year fluid engineering contract for 18 high-pressure wells, ONGC has frontloaded chemical QA, legacy fluid reuse, and stringent minimum inventory mandates on bidders. 8With site operations spread across 3 rigs and chemical compliance monitored down to bulk testing and packaging, contractors face cost exposure well beyond routine norms.
8Clause-linked penalties and sampling audits mark a sharp pivot in risk allocation.
Axle overhaul tender shifts pressure to bidders: ONGC’s Vadodara contract frontloads supply chain and delivery risks
8In a new 3-year rate contract for critical rig component overhaul at CWS Vadodara, ONGC has stripped down flexibility on spares sourcing, enforced tight bid norms, and provided no cost buffer for part substitutions.
8With OEM dependencies unaddressed and penalty frameworks looming post-award, the tender raises both operational uncertainty and bidder hesitancy.
OIL floats high-stakes rig charter for Rajasthan heavy oil: Rs 8 Cr bid bond, full-service IDS scope tightens competition
8OIL India is inviting global bids for two Integrated Drilling Services packages in Rajasthan’s Baghewala area, covering 20 wells or 2 years.
8With an INR 8 Cr bid security and tight mobilization clauses, the tender leans heavily in favor of OIL’s risk mitigation, even as performance timelines and compliance obligations raise contractor entry hurdles.
OIL eyes multistage fracking revival in Assam’s Balimara cluster: Five horizontal wells on horizon
8Oil India has floated an EOI to scout experienced vendors for multistage fracking in five horizontal wells in Assam’s Barail formation.
8The move signals a fresh production push in tight reservoirs, with early vendor feedback shaping the scope for a likely open tender. The pilot nature and zone depth (~3900m TVDSS) imply both opportunity and execution risk for service providers.
Bidder tripwire in SPF tender: OIL’s price sheet fix raises rejection risk amid vague clause cover
8OIL India’s SPF tender rewrites its price bid format mid-way, threatening disqualification for format error—even as qualification, MSE relief, and contract-splitting rules remain opaque.
8The lack of direct bidder engagement signals a contract tilted firmly in the client’s favor.

Jul 08, 2025: Downstream contracting briefs: Part I

PNGRB floats tight-control ATF pipeline bid for KIAL: Rs. 30L entry, strict route & zero-deviation clauses
8PNGRB has launched bidding for a 40-km ATF pipeline to Kempegowda Airport with steep Rs. 30 lakh entry fee and tight regulatory compliance. Entities must self-negotiate access with KIAL and adhere to a rigid, no-exception bidding framework—favoring large incumbents.
NRL restricts ESG consultancy race to Big 7 firms: QCBS model trims MSME entry, cashflow strain possible
8Numaligarh Refinery’s Rs.Cr+ ESG consultancy bid mandates a high-bar QCBS filter, favouring global majors like McKinsey, BCG, and EY. MSMEs and startups are locked out despite rising ESG advisory talent in India, raising questions on procurement equity and deliverable flexibility.
Fifth extension signals vendor caution in BPCL’s polyolefin package at Bina
8A technically dense and IP-restricted EPCC tender for BPCL’s polypropylene and Butene-1 units has seen five deadline extensions, the latest pushing closure to July 22. The repeated slippages hint at bidder apprehensions on IP clauses, liability risks, and scope complexity.
PLL tightens contractor controls in Dahej steam package: Price schedule overhauled, PBG scaled to cost hikes
8Petronet LNG’s Dahej steam system tender now demands PBG recalibration for price escalations and introduces a stricter withdrawal regime with blacklisting risk. EIL’s rolling BG mechanism and shift from “Provisional Acceptance” to “Commissioning” mark a decisive move to defer liability and tighten financial safeguards.
SAF catalyst EOI gets second extension, IOCL eyes hybrid revamp–grassroot strategy for HEFA rollout
8IOCL’s SAF push via HEFA route gets a timeline boost with bid submission now extended to 25 July 2025. The dual-track strategy—revamp of hydrotreaters and greenfield build—marks India’s most structured attempt yet at scaling aviation biofuel infrastructure under CORSIA norms.
PLL’s water block EPC tender tightens specs, resists bidder concessions amid July deadline push
8Despite a host of requests for relaxations in bank guarantees, penalty caps, and payment terms, EIL has held firm on commercial terms for PLL’s complex RWTP–RODMP–CPU–ETP package. A sharp revision in technical specs and drawings under TA-01 may reset cost assumptions just weeks ahead of the final bid deadline.
EIL sharpens compliance specs in CDU–VDU heater bid: Anti-vibration norms, stacking revisions signal higher contractor burden
8EIL’s latest technical amendments to BPCL’s CDU–VDU heater package tighten inspection, vibration control, and modular erection norms—putting more design, risk, and shop-fabrication responsibility on contractors. The changes mark a clear shift toward pre-verified assemblies and stricter structural accountability.
MRPL extends VOC system tender 4th time: Critical specs relaxed, steam tracing dropped, and scope clarified
8After four deadline extensions, MRPL has clarified key engineering ambiguities in its VOC collection and treatment tender. Major deviations include the removal of VFD requirements, relaxed tracing needs, and drainage scope fixes—reducing cost but raising design diligence expectations for vendors.
EIL pushes HPRT generator bid deadline thrice: Stringent specs limit eligible OEMs for Bina Petchem expansion
8The tender for BPCL’s HPRT-Electric Generator Package under BPREP has seen three extensions, hinting at bidder hesitation amid stiff qualification norms, deep vertical integration demands, and tight reference compliance. Risk exposure, supply chain expectations, and rigid structuring remain key hurdles.
High-bar entry: EIL pushes CCR bid deadline again as UOP NDA delays stagger scope access
8The bid deadline for Petronet’s Dahej CCR unit has been pushed to July 29, reflecting delays in executing UOP’s mandatory NDA. With technical documents gated behind offline confidentiality protocols, vendors face prep bottlenecks in this high-stakes licensed package.