IOC signs agreement with TIDCO for the project
The proposed LNG (liquefied natural gas) terminal in Ennore, near Chennai, will have a capacity of 5 million metric tonnes per annum and is to be set up at an estimated cost of Rs.4,320 crore.
The project is to be implemented by a joint venture company, in which Indian Oil Corporation, Tamil Nadu Industrial Development Corporation Limited and others, including LNG suppliers, would be stakeholders.
IOC and TIDCO, on Thursday, signed an agreement, which sets out the broad framework for the joint venture for implementation and operation of the regasification terminal at Ennore port. There would be equity participation by TIDCO in the project as envisaged in a memorandum of understanding in August 2010 for co-operation in the development of infrastructure projects, including LNG import and regasification terminal in Tamil Nadu through a joint venture company, a release from IOC said. IOC would have a minimum of 26 per cent stake in the joint venture.
The heads of agreement was signed by IOC Chairman R. S. Butola and Principal Secretary, Industries Department, and Chairman and Managing Director of TIDCO, N. Sundaradevan, in the presence of Chief Minister Jayalalithaa at a function here.
On commissioning, which is expected to be 2015-16, the facility will supply natural gas/regassified LNG to the gas-starved southern states, particularly Tamil Nadu, and some parts of Karnataka and Andhra Pradesh. Sources in the oil company said the project would come up on about 130 acres.
IOC has already undertaken front-end engineering design (FEED), environment impact assessment (EIA) studies through reputed consultants and is making good progress on the project. It is also in discussions with various international LNG suppliers for the project.