Rs 4,500 cr Ennore LNG terminal to be ready by 2015: IOC chairman

Chennai:

The Rs 4,500 crore liquefied natural gas (LNG) terminal to be set up at 132 acres of land in Ennore is expected to be ready by 2015, said a top IOC official.

Speaking to reporters after signing an agreement  with Tamil Nadu government in the presence of Chief Minister J Jayalalithaa here on Thursday, chairman of Indian Oil Corporation R S Butola said that  Indian Oil Corporation Ltd (IOC) is confident of completing the five million tonne per annum (tpa) liquefied natural gas (LNG) terminal by 2015 in partnership with Tamil Nadu Industrial Development Corporation (TIDCO). 

““We have got some fiscal incentives from the state government for the project,” he said adding that the LNG terminal will be in modular form.

“Southern India does not have adequate supplies of piped gas and the project will address this gap,” he Butola said.

“The initial capacity will be five million tpa and we can double the capacity later,” said Butola, who signed the agreement with Industry secretary N Sundaradevan on the after the release of Vision 2023 document.

He said TIDCO will have a small percentage of five to 10 per cent stake in the project. “The mode of funding the project cost – ratio of debt to equity is being worked out,” he added.

Butola said LNG will be imported and IOC is looking at entering into long term LNG supply contract.

Meanwhile, the state also signed an agreement with Engineers India Limited (EIL), which will be a consultant in establishing petroleum, chemicals and petrochemical investment region (PCPIR) between Cuddalore and Nagapattinam.

The agreement was signed between EIL chairman and managing director A K Purwaha and Industries Secretary Sundradevan.

PCPIR is a major infrastructure initiative of the state and the Union Ministry of Chemicals to attract investments in chemicals and petrochemicals.