IOC scraps tender for LNG tankers

Vol 20, PW 9 (26 Jan 17) News in Brief

IndianOil is widely expected to issue a fresh tender this week or next for a Project Management Consultant to help it hire LNG tankers for its under-construction Ennore terminal in Tamil Nadu.

IOC sent a terse email to bidders on January 17, cancelling an earlier tender issued on July 13, 2016 where it received five or six bids by the August 10, 2016 deadline. No reasons were given for cancelling the tender.

Among those who sent in bids at the time were Poten & Partners, Braemar ACM Shipbroking and Simpson Spence Young. IOC is believed to be unhappy that some companies who bid had no previous experience hiring LNG tankers.

IOC wants the selected consultant to prepare tender documents; draw up special contract conditions; suggest the size, specifications and the number of tankers required; suggest the term and type of the contract; and hold meetings with bidders to resolve technical and commercial queries. IOC wants to commission its 5m t/y LNG terminal at Ennore by 2018 in an effort to challenge Petronet-LNG's dominance in the LNG sector.