Very little interest in Ennore LNG tank tender

Vol 18, PW 17 (23 Apr 15) Midstream & Downstream

No, you haven’t travelled back in time and yes IHI and Mitsubishi Heavy Industries (MHI) are again the only two bidders in IndianOil’s tender to build LNG storage tanks for its upcoming 5m t/y Ennore LNG terminal in Tamil Nadu.

On April 15, both Japanese companies submitted technical and price bids to IOC in its tender, issued for the second time on March 3, 2015. Italy’s Saipem and Taiwan’s CTCI attended the pre-bid at the Chennai office of Project Management Consultant Foster Wheeler on March 19 but eventually did not bid.

“IOC is evaluating bids,” says a source close to the project. “It wants to hire a contractor as soon as possible.

IOC has already lost valuable time because the tender was issued again." MHI was lowest bidder quoting $177m against $187m quoted by IHI when IOC opened price bids in the original incarnation of this tender on October 27, 2014, after receiving them a year earlier on October 15, 2013.

IOC re-issued the tender because it mistakenly asked for supervision cost quotes in US dollars instead of Indian rupees. Separately, IOC also wants bids by April 29 to build marine facilities to berth LNG tankers at Ennore.

Likely bidders include Coastal Marine Construction & Engineering, AFCONS, ITD Cementation, Essar Projects, Gammon India, Leighton India, Simplex Infrastructures and SBM Offshore.

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