5-million tonne (mt) capacity project has now shot up to Rs 5,150 crore
Indian Oil Corporation chairman B. Ashok addressing a press conference in Chennai on Wednesday. - DC
Chennai: The state may finally become privy to an exclusive liquefied natural gas (LNG) terminal project at Ennore, the first-of-its-kind along the east coast of India. The decade-old pet project of Indian Oil Corporation (IOC) is finally set to see the light of the day with all the groundwork in place and the project finally set to take off in a couple of months.
“We expect the project to go on stream by third quarter of 2017-18,” said IOC chairman Mr B. Ashok. The 5-million tonne (mt) capacity project, which was initially estimated to be around Rs 4,500 crore, has now shot up to Rs5,150 crore and the IOC board has rendered the necessary approvals for the commissioning of the project, he informed reporters. The LNG project is a joint venture between IOC and Tamil Nadu Industrial Development Corporation (Tidco) with the former holding 45 per cent stake and the state entity owning 5 per cent stake.
The completion of project will pave the way for supply of natural gas and R-LNG (regassified LNG) to gas-starved southern states, particularly Tamil Nadu and some parts of Karnataka and Andhra Pradesh. This is expected to aid further industrial growth in the region.
“We are looking for sourcing partners and foreign companies have evinced interest in picking up a strategic stake in the project,” the chairman said. For the initial supply, IOC has made arrangement to source up to two million tonnes of LNG from its own projects at British Columbia province in Canada and Cameron project in the United States. IOC has taken up 10 per cent stake with an investment of $4 billion in the Canadian venture. “Our share would be 1.2 mt from this Canada plant along with another 0.7 mt will be sourced from the Cameron project,” Mr Ashok said.
On its greenfield Paradip refinery of 15 mmtpa capacity, the IOC chairman said 97 per cent of the work is over and first unit of the refinery is expected to go on stream by March 2015.
( Source : dc correspondent )
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