Indian Oil Corporation board okays Ennore LNG terminal

The board of Indian Oil Corporation recently approved the ₹ 5,150-crore Ennore LNG terminal project to the north of Chennai.

B Ashok, Chairman, IOC, said work on the 5-million-tonne Liquefied Natural Gas terminal, the first such infrastructure on the east coast, will start in a couple of months.

IOC has appointed Foster Wheeler of Spain as the project management consultant, statutory approvals are in place and with the IOC Board giving its nod, contracts are being finalised for the terminal coming up in Ennore at the Kamarajar Port. I

OC hopes to complete the project by 2018 and is participating in the bids called by the Petroleum and Natural Gas Regulatory Board for laying pipeline for the project linking the terminal to Tiruchi, Nagapattinam and Madurai in South Tamil Nadu apart from lines to Chittoor and Bangalore, he said.

Ashok said the joint venture between IOC which holds 45 per cent stake and Tamil Nadu Industrial Development Corporation (Tidco), a state government agency which holds 5 per cent, will also rope in strategic partners — a number of multinational giants have envinced keen interest in the project. On the LNG source for the terminal, Ashok said, projects in Canada and Cameroon in which IOC holds a stake can supply up to 2 million tonnes, 20 per cent of the terminal’s needs. The balance will come from strategic partners who will take a stake in the Ennore project.

On the issue of the Tamil Nadu Government’s stand on not allowing pipeline access through agricultural land — an issue that has stalled GAIL pipeline project and IOC’s own Chennai-Tiruchi LPG pipeline project, Ashok said discussions are on and the company hopes to resolve the issues amicably.

The natural gas will available in this region on such a scale for the first time and will fuel industrial growth and feed homes through City Gas Distribution projects.

IOC estimates the industry demand for LNG in the region at 12.5 million cubic meter per day (mscmd) in 2015-16, going up to 18.35 mscmd in 10 years and to 32 mscmd in 2040.