IOC cancels Ennore regasification facilities tender

Vol 17, PW 13 (13 Feb 14) Midstream & Downstream

As we predicted, IndianOil has cancelled its tender to build regasification facilities at its upcoming 5m t/y Ennore LNG terminal in Tamil Nadu.

IOC sent shortlisted bidders a one-line email on February 7 saying the tender had been scrapped. It was a shrewd move designed to soothe companies disqualified last September but who weren’t told formally, namely Tecnimont, Toyo Engineering, Technip, Techint and Tecnicas Reunidas.

Three of these disqualified bidders wrote to IOC expressing concerns and were even contemplating legal action. Qualified bidders were Saipem, Samsung, Fernas Construction, Black & Veatch partnering Fluor, TGE with Linde, Huanqiu Contracting & Engineering (HQC), Mitsubishi Heavy Industries (MHI), Japan’s IHI and Taiwan’s CTCI.

"Losing against healthy competition is bearable," says a source. "But it is disappointing when such high value tenders simply get annulled after so much effort.

" IOC is expected to issue a fresh tender next week. Meanwhile, on February 7, IOC received EoIs from companies interested in building Ennore's marine facilities, among them Coastal Marine Construction & Engineering (COMACOE), AFCONS, ITD Cementation, Essar Projects, Gammon India, Leighton India, Kolkata-based Simplex Infrastructures and Netherlands-based SBM Offshore.

IOC has yet to open price bids in its tender to build two 160,000-cubic metre LNG storage tanks, which it originally wanted to finalise by March 2014.

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