IndianOil to invite EoIs for Ennore LNG stake

Vol 18, PW 26 (27 Aug 15) Midstream & Downstream

Soon after wresting the title of India’s most profitable company from Reliance, India's largest fuel retailer IndianOil is making major strides with its Ennore LNG project in Tamil Nadu.

Early this month (August) IOC’s Board agreed to invite EoIs within the next month or two from potential partners interested in taking up to 50% at the under-construction 5m t/y terminal. “We feel the best way to select a partner is by inviting EoIs,” confirms an IOC director.

“We haven’t decided yet whether to appoint an external agency to manage the EoI process. We think the best time to invite EoIs is after construction work picks up.

We can then ask for a higher price for equity participation. Patience pays!” IOC will hold 45% in IOCL LNG, a joint venture it is setting up to execute Ennore.

Tamil Nadu Industrial Development Corporation (TIDCO) will hold 5% while 50% will be with financial institutions IDFC and ICICI, who will hold it temporarily until a strategic partner is found. “They will both give up their stake after we find a partner,” explains IOC.

Work on the ground has begun at Ennore with IOC signing the lease for land on which the terminal will be built on July 31, adds a source at Black and Veatch which is building the re-gas facilities. "We have taken possession of the land and begun engineering work," he says.

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