This is not the first time the decision has been postponed — the tenders were first called in late 2007, and the results have been plagued by months of delays since.
“In view that this is a large-scale, complex and innovative project, more time is required to conduct a comprehensive study of the design and construction process before embarking on it, as safety remains our top priority,” a JTC spokeswoman said in an emailed response to queries from Reuters.
“We target to have a decision on the tenders by Q2 this year,” she added.
JTC has declined to reveal the number of bidders or their names.
Industry sources said bidders for the operation tender include Dutch oil and chemicals storage firm Royal Vopak NV, New York-based engineering and infrastructure consultants Parsons Brinckerhoff and storage operator Horizon Terminals Ltd, wholly owned by Emirates National Oil Company (ENOC).
Vopak already operates landed oil storage tanks next to the planned facility. Also Horizon own a large tank terminal in the area.
In its financial year 2009 budget statement unveiled last month, the government said it had set aside about S$228 million ($151 million) to construct the first phase of the cavern project.
The first phase of the facility consists of five caverns that can hold 1.485 million cubic metres of crude oil, naphtha, condensate and gas oil.
There will be about 7.0 km (4.3 miles) of galleries and tunnels. A planned second phase could add another 1.3 million cubic metres of storage.
The first two caverns of phase one are expected to be operational by end-2010 or early 2011.