Indian Oil to go ahead with its Rs 4,320 cr Chennai project

Indian Oil Corporation Limited has said it would go-ahead with its Rs 4,320 crore first liquefied natural gas (LNG) plant at Ennore near here.

RS Butola, chairman, Indian Oil Corporation said they were going ahead with the project even if a partner is selected now or later. "Some bids will be out and we will appoint the contractors for the tanks and jetty," he informed at a shareholders' meet of IOCL subsidiary company, Chennai Petroleum Corporation Ltd.

According to a banker, IOC has not been able to find a strategic partner who can bring value to the project. "They are looking for a partner who can source gas globally for the new project and who has experience in operating LNG terminal," said the banker. The company is setting up a five-million tonne a year LNG terminal at Katupalli in Ennore.

The project will involve an investment of Rs 4,320 crore.