ENNORE: IndianOil re-tenders LNG tank contract

Mitsubishi should get an award for patience as it tries - again - to win IndianOil's jinxed tender to build LNG storage tanks at the proposed 5m t/y Ennore LNG terminal.

IndianOil on March 3 re-issued a tender to build two 160,000 cubic metre storage tanks provoking howls of disbelief. Mitsubishi was under the impression it had already won when on October 27 last year (2014) it bid lowest quoting $177m against $187m quoted by IHI following bids from both companies a year earlier on October 15, 2013.

But instead of issuing Mitsubishi a LoA IndianOil scrapped and re-launched the tender because of a silly mistake. Instead of asking for supervision cost quotes in US dollars it asked for them in Indian rupees.

"The difference was a couple of million dollars," says an industry source. And yet Mitsubishi executives gallantly attended the pre-bid for the fresh tender on March 19, along with executives from IHI, Saipem, CTCI and Samsung.

Foster Wheeler, appointed by IndianOil in May 2013 for $10.7m to oversee the tender, held the pre-bid at its Chennai office. Not everybody is so forgiving.

"IndianOil has made a mockery of itself," says one contractor. "Seeing how they've gone about the tender we stayed away and won't bid this time."

 IOC wants bids by April 15.