IOC's Rs 4,500 cr Ennore LNG terminal to be ready in 2016-17

The 5- mn tonnes capacity can be expanded to 10 MMTPA

Indian Oil Corporation (IOC)’s five-million tonnes per annum LNG-based import, storage and regasification terminal at Ennore is expected to go on stream in 2016-17. The public sector oil major had originally planned to commence the project in 2015.

According to company’s annual report 2014-15, it was stated, the Rs 4,500-crore Ennore LNG terminal project on 132 acres  has been delayed and is now being targeted for completion in 2016-17.  

The project is crucial to IOC as it has planned to have a significant share in the country’s gas infrastructure through participation in upcoming gas pipelines (in joint ventures).

“Steps have been initiated to have a significant share in the country’s gas infrastructure through participation in the upcoming gas pipelines (in JVs), and the planned import storage and degasification terminal of five mmtpa LNG with a provision for future expansion to 10 mmtpa at Ennore near Chennai,” according to the annual report.

IOC said it was in talks with three foreign companies for the LNG terminal project.

The project would mainly cater to industrial needs and household purpose in Tamil Nadu besides reaching out to customers in Bengaluru and Andhra Pradesh.

According to IOC, south India does not have adequate supply of piped gas and the project is likely to address this gap.

Further, with natural gas emerging as an alternative fuel in the country, IOC considered expanding its portfolio to include gas as a good business opportunity.

A memorandum of understanding was signed between IOC and Tamil Nadu Industrial Development Corporation (Tidco) for the project in 2012.