IOC scouts for JV partner for LNG terminal

The Indian Oil Corporation (IOC) has said is in the final stages of taking over land and forming a joint venture for the liquefied natural gas (LNG) terminal project at Ennore near Chennai. The cost of the project, which will be the first LNG terminal in the eastern coast, has been revised to Rs 5,150 crore.

Speaking on the sidelines of the alumni association’s meeting of College of Engineering, Guindy in Chennai on Sunday, IOC chairman B Ashok said orders were being firmed up and the joint venture would be formed in a month. The project is expected to be completed by end-2017.

On roping in a strategic partner, Ashok said many companies from across the world had shown interest. He said that IOC was looking at partners who could add value to the project, such as sourcing of gas or shipping.

IOC has tied up to source 1.9 million tonnes of natural gas, including 1.2 million tonnes from British Columbia province, Canada and 0.7 million tonnes from the Cameron project in the US. It may be noted that IOC has taken up a 10 per cent stake with an investment of $4 billion in the Canada project and its share is 1.2 million tonnes from this plant.

According to Ashok, the company doesn’t see any problem to source for the balance requirement.