Foster Wheeler wins IOC Ennore contract

Vol 16, PW 10 (29 Nov 12) Midstream & Downstream

Tractebel was tipped to win but in the end UK-based Foster Wheeler walked away with the Project Management Consultant (PMC) contract for IndianOil’s proposed 5m t/y LNG terminal at Ennore.

When bids were opened on November 12, Foster Wheeler came lowest, quoting $10.7m. Spain’s Gas Natural Fenosa was second, quoting $13.5m.

Tractebel’s bid was left unopened; as was that from Engineers India (EIL). Most thought Tractebel would win easily because it did the first ‘quick scan’ study for this project in 2004.

“But Tractebel has never worked on any Indian LNG project as a PMC,” we hear. “That’s why IOC didn’t open its bid; EIL worked with Petronet-LNG at Dahej but messed up its commercial bid.

” Fluor Daniel also bid in this PMC tender, which closed on June 1. Foster Wheeler will be responsible for preparing tenders and inviting bids for EPC contracts.

This month (November) IOC is likely to invite EoIs for the regasification facilities and next month (December) for marine facilities to berth LNG carriers and unload LNG. Controversy is brewing over accusations IOC is restricting competition in the tender to build two 160,000-cubic metre capacity LNG storage tanks.

Indian EPC contractors complain strict criteria bar them from partnering foreign companies. Punj Lloyd, for example, wanted to bid with Samsung C&T, but stayed away.

Last month IOC received EoIs from Japan’s IHI, Taiwan’s CTCI, Samsung Engineering, Technip and Italian companies Saipem and Techint, after issuing an EoI notice on September 26.