Indian Oil Corporation (IOC) has invited bids for the construction of a 5 million tonne-a-year LNG terminal at Ennore in Tamil Nadu, which would be constructed at a cost of Rs. 4320 crore.

According to officials, IOC is seeking expression of interest (EoI) proposals for a lump sum engineering, procurement and construction (EPC) contract for the LNG import and re-gasification terminal. The last date for submitting EoI is April 16.

IOC has drawn up plans to build a LNG terminal at Katupalli in Ennore by 2016. It will have an initial capacity of 5 million tonne which could be expanded to 10 to 15 million tonne in the future.

There is also a likelihood of Tamil Nadu Industrial Development Corporation (TIDCO) taking a 5-10 per cent stake in the project. Officials said that talks were underway with Russian giant Gazprom for a 26 per cent stake in the project in lieu of gas supplies. “To qualify, bidders must have successfully completed an EPC contract for an LNG re-gasification terminal with minimum capacity of 2.5 million tonnes per annum or LNG liquefaction facilities of minimum capacity of 2.5 million tonnes during the last 10 years,” the tender document said. The bidder, having a minimum annual turnover of $200 million during last three years , should have carried out its own design, engineering, procurement, construction, commissioning and project management for these facilities.

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