IOC eyes stakes in corporate ports

Country’s public sector oil marketing major Indian Oil Corporation (IOC) has shown interest in picking up stakes in ports where the corporation and its subsidiaries are investing to create infrastructure for their captive use. It may be noted that an IOC group company Chennai Petoleum Corporation Ltd (CPCL) had lined up investments to the tune of Rs 1,000 crore in two corporate ports in South India.

B M Bansal, chairman and director (planning and BD), Indian Oil Corporation told Business Standard, “It is not our core area of operation. However, if it is financially viable and the condition permits us, we may consider it.”

IOC’s interest comes at a time when CPCL is planning to invest around Rs 800 crore on setting up a single buoy mooring (SBM) at Ennore Port, near Chennai. The port is a corporate port under the Ministry of Shipping and a major port.

The proposed facility will handle very large crude carrier (VLCCs) with a capacity of 260,000 tonnes of crude can come and discharge its cargo at the SBM, while the crude can be piped to Ennore and stored there. Another pipeline will take the crude to the refinery. The facility is likely to be ready in the next four years.

It may be noted that the IOC is also planning a 2.5-million tonne a year liquefied natural gas (LNG) import terminal at Ennore on the outskirts of Chennai. The company is also exploring the possibility of setting up a power plant at the terminal. The project is expected to attract an investment to tune of around Rs 10,000 crore.

The project has again been planned near Ennore port which would help the corporation address the logistical challenges.

Similarly, the corporation is also planning to lay a pipeline to connect K G Basin to Karaikal port, a private and upcoming port run by the Marg Group. CPCL is planning to use the port for receiving higher parcel size of crude by providing an unloading facility and pipeline from Karaikal port.