NTPC, L&T keen to partner IOC in Ennore LNG project

State-owned power utility NTPC and construction firm Larsen & Toubro (L&T) are among the companies, which have evinced interest in partnering Indian Oil Corporation (IOC) in its $750-million LNG import terminal at Ennore.

"Many companies have evinced interest in the project... NTPC, L&T, Tamil Nadu Electricity Board (TNEB) are among those," IOC Chairman B M Bansal told reporters here.

However, IOC has not yet decided if it will build the 2.5 million tonnes a year liquefied natural gas (LNG) import terminal on the outskirts of Chennai.

"The (investment) decision will depend on DFR (Detailed Feasibility Report) which we have commissioned," he said adding the report was expected by year-end.

IOC had in 2007 put on hold the LNG import-cum-regassification terminal after huge gas finds off the east coast made the project economically unviable.

Gas from discoveries made by Reliance Industries, Oil and Natural Gas Corporation (ONGC) and Gujarat State Petroleum Corporation (GSPC) as also Petronet LNG's under construction Kochi LNG terminal may feed much of the demand in the region, leaving little scope for Ennore.

"We will decide (on the project) based on the DFR," he said adding LNG suppliers like Spain's Repsol and Qatar have envinced interest in suppling the fuel to the terminal.

Bansal said equity structure and suppliers would be decided once DFR is completed.

When the Ennore LNG project was put on hold, state-run gas utility GAIL India too wanted to be part of the project.

The Petroleum Ministry had then decided that IOC and its subsidiary Chennai Petroleum Corporation (CPCL) would be the lead promoters.

It was also decided that the 'anchor load' (minimum viable load) would be provided by CPCL and Madras Fertilisers.

Bansal said IOC was also talking to other LNG suppliers in Iran, Australia and Nigeria for feeding the Ennore project.

"Talks are in preliminary stage and nothing is finalised as yet," he said.

Petronet is currently building a 2.5 million tonnes a year capacity LNG import terminal at Kochi in neighbouring Kerala.

The terminal would be ready by 2012, by when RIL's Krishna-Godavari basin D6 field would have hit peak output of 80 million cubic meters per day and GSPC's Deendayal discovery would have started producing 10 mmscmd. ONGC is also targeting its gas find in KG basin to come on stream by 2012-13.