GAIL LNG tender to ferry gas from US finds no bidder

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After postponing tender deadline thrice and also one year later, state-owned gas utility GAIL India Ltd has not found any bidder for its USD 7 billion tender to hire newly-built LNG ships to ferry gas from the US.

GAIL’s Rs 42,370 crore tender to hire nine newly-built liquefied natural gas (LNG) tankers drew a blank due to the government’s condition of building a third of the ships in India, officials said.

GAIL had in August last year floated a global tender to charter nine newly-built ships for transportation of natural gas in its liquid form at sub-zero temperature (LNG) from the US.

The tender, however, required bidders to build one-third of the ships in India, a condition that found no takers.

It first postponed the last date of bidding from October 30 to December 4, then to January 6 and February 17.

GAIL was originally not in favour of the condition but succumbed to Oil Ministry’s dictate once it was threatened with a Presidential directive.

Officials said the company may now have to re-float the tender without the ‘Make in India’ condition.

GAIL board had on April 4 last year approved hiring of up to 11 newly-built LNG ships.