Oil Majors Vying For Ennore Port Contract

According to port sources, all these companies have made presentations to the port authorities and are keen to set up LNG facilities because of the assured access to gas supplies. These companies are in related businesses and hence their interest in the terminal, the sources said.

Coastal Corporation, for instance, owns one of the largest gas pipeline networks in the world. Total and Shell have roped in local partners to put up the project. Hindustan Petroleum will team up with Total while Shell will tie up with the Gas Authority of India Ltd.

Enron Corporation has also shown interest in the terminal. Although the LNG can be used for setting up both power plants and fertiliser units, industry analysts have pointed out that fertiliser plants are not viable.

Preliminary estimates peg the cost of the project at Rs 3,000 crore. India could be a large market for LNG, available in abundance in the South-East Asian region.

If gas is available, southern India is an attractive market because of the poor power situation in the region.

As per plans, the port will handle dirty and bulk cargo like coal and iron ore. Apart from such traditional cargo, LNG has been identified as a commodity that Ennore can profitably handle, given its natural draught of almost 20 mts, which is deep enough for the huge LNG carriers.

LNG has been identified as a commodity that Ennore can profitably handle, given its natural draught of almost 20 metres, which is deep enough for the huge LNG carriers.