Indian Oil LNG terminal to be ready by 2017-18

The investment in Joint Venture project is Rs.5,150 crore

Published - November 12, 2014 11:16 pm IST - CHENNAI:

B.Ashok (left), Chairman IOC and Gautam Roy, MD, CPCL, at a press conference in Chennai on Wednesday.Photo: Bijoy Ghosh

B.Ashok (left), Chairman IOC and Gautam Roy, MD, CPCL, at a press conference in Chennai on Wednesday.Photo: Bijoy Ghosh

Indian Oil Corporation’s first liquefied natural gas (LNG) import terminal and also the first one on the east coast at Kamarajar Port will become operational by the third quarter of 2017 or early 2018.

Briefing reporters here on Wednesday, IOC chairman B. Ashok said the company was setting up a five million-tonne LNG terminal with storage and re-gassification facilities at Ennore. The board had already given its nod for the project a month ago, he said. Civil works would begin soon.

The Rs.5,150-crore project is developed jointly by IOC and Tamil Nadu Industrial Development Corporation. IOC has 45 per cent stake and the latter five per cent. On the status of the LNG project, he said: “We received statutory approvals and land has been approved. The project management consultant is in place. Contracts have been finalised. We will start the project very soon. The implementation of the project will provide access to natural gas in this part of the country. It will play a crucial role in the economic development and in city gas distribution.”

To a query on the sourcing of LNG, Mr. Ashok said 1.2 million tonnes of would be sourced from a project in British Columbia, Canada, where the company has invested $4 billion for a 10 per cent stake. About 0.7 million tonnes would be sourced from the Cameron project in U.S. On the greenfield refinery at Paradip, he said that IOC had completed more than 97 per cent of the work. The first unit would be commissioned by February/March 2015, he added. Besides, IOC was evaluating the possibility of setting up a pipeline from Paradip to Visakhapatnam that would connect Hyderabad too.

IOC had planned to invest Rs.750 crore in Tamil Nadu during the current year out of which, Rs.550 crore had been spent towards automation and augmentation of existing facilities, he said.

On the merger of Chennai Petroleum Corporation Ltd. with IOC, he said it could be done only after solving certain issues. The crucial issue pertained to Naftiran Intertrade Company Ltd., holding 15.40 per cent stake in CPCL.

Asked about the demand by fertilizer firms for a reduction in supply price of naphtha, he said IOC exported naphtha only when there was a demand for it. “We will stop exporting naphtha, if domestic firms ask for it,” he said.

We’ll take appropriate decision, IOC chief

Indian Oil Corporation has not received any communication from the government about the capping of budget subsidy on cooking gas at Rs.20/kg., according to the company’s Chairman B. Ashok.

Asked about the possibility of an increase in the price of cooking gas cylinders consequent to the government’s decision, Mr. Ashok pointed out that LPG prices were falling in global markets.

“We’ll take an appropriate decision taking into account all factors,” was his answer when asked what the company would do if global prices were to increase.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.