IOC to rope in partner for project

The Indian Oil Corporation (IOC) has said it would rope in a strategic investor for its proposed Rs 10,000 crore project at Ennore, Tamil Nadu. The oil major recently signed a a memorandum of understanding (MoU) to set up a liquified gas terminal and a power plant in the state.

IOC’s chairman B M Bansal, who was here to Chair Chennai Petroleum Corporation (Ltd) annual general meeting said “we are planning to rope in a strategic partner for the project. Money is not a major problem for us, its the technology and the partner should bring in a synergy.”

He added, the detailed feasibility report on the project will be ready by November or December. Following which we should take the investment to the board and we will look for the contractor.

It may be noted in September 2010, the company has signed a MoU with the Tamil Nadu government This MoU encompasses setting up a 2.5 million tonnes per annum LNG terminal which will cost of around Rs 3000 crore. The capacity of this terminal can be later increased to 5 Million Tonnes annually.

The complex at Ennore will include a 1,000 Mw LNG based Power plant that is likely to cost around Rs 5,000 crore driven by the LNG re-gasification terminal and gas based Power Plant, Ennore will become a Special Economic Zone, that will spawn a grid of gas pipelines criss-crossing the demand centres across Tamil Nadu and other southern states.

This will spur city gas distribution and boost industrial activity in the region. The Ennore gas terminal is expected to be commissioned by the year 2014-2015.

Under the MoU, IOC and Tamil Nadu Industrial Development Corporation (Tidco) will jointly set up the LNG import and re-gasification terminal including marine facilities, LNG based Power Plants, Gas Grid in Tamil Nadu, in addition to participating in city gas distribution business in the state of Tamil Nadu.