Gujarat Maritime Board (GMB) is in the process of selecting a contractor for its maiden liquefied natural gas (LNG) port terminal project with a floating storage and regassification unit (FSRU) near Jafrabad in Amreli.

The board opted for the more competitive Swiss Challenge (comparative bidding) route for the sole bid for the project.

Under this method, third parties are allowed to make better offers (challenges) for a project with an objective to discourage frivolous project, or to avoid exaggerated project development costs.

SWAN Energy (SEL), referred to as 'original project proponent (OPP), had proposed to develop the terminal. Now, GMB would give an opportunity to the firm to make its proposal competitive.

The concept was accepted keeping in view the limitations of onshore LNG receiving terminals.

The state port regulator has invited Request for Proposals (RFP's) for the project, under section 10 of Gujarat Infrastructure Development (GID) Act (invited comparative bids, popular as Swiss Challenge route) to develop the terminal.

SEL and Gujarat Pipavav Port (GPPL) signed an MoU in the Vibrant Gujarat Summit 2011 in the presence of GMB. Thereafter, they carried out various marine engineering studies and prepared the draft project report.