Preliminary Expression of Interest for filing Strategic Storage Facility
In terms of the Integrated Energy Policy of India, “a reserve equivalent to 90 days of oil imports should be maintained for strategic cum buffer stock purposes”, which would be used to address short term price volatility.
Accordingly, towards ensuring India’s energy security, Indian Strategic Petroleum Reserves Limited (“ISPRL”), a special purpose vehicle, which has oversight of construction of strategic crude oil storage facilities in India, has, on behalf of the Government of India, invited preliminary expressions of interest from reputed companies, traders, financial institutions, multinational companies, either individually or as a consortium, for storing crude oil in any one or more compartments of the strategic crude oil storage facility constructed at Padur in the State of Karnataka.
The Padur facility which is expected to be ready for crude filling in the first quarter of 2017, is connected to the 15 MMT Mangalore oil refinery and has four compartments which provide a total storage capacity of 19.4 million barrels.
Interested bidders are to apply by December 30, 2016, with details of the quantum of storage and number of compartments preferred, percentage of storage proposed as strategic volume, duration of storage, replenishment period of quantity utilized, and proposed revenue model and duration.