IndianOil looks for third partner
New Delhi   25-May-2011

Public sector IndianOil is scouting for a third partner for the proposed LNG terminal at nearby Ennore with a project cost of Rs 4,320 crore, a top official said in Chennai on May 24.

IndianOil and Chennai Petroleum Corporation are setting up the five-million-ton-per-annum (MMTPA) capacity terminal for supply of liquefied natural gas. CPCL and IOC have signed an agreement for supply of LNG.

“For this project, we are definitely looking for a partner. Right now we are talking to many companies who can become our partner," IOC chairman Mr. RS Butola told reporters after announcing group company Chennai Petroleum Corporation Ltd's results.

Stating that the project is “well on course”, he said they had not taken any decision on identifying the partner. “We have not taken any decision on it. But the project is currently on hand,” he said.

For the project, CPCL is gearing itself to receive natural gas for its heaters and boilers and also for its power plant and hydrogen generation units.

Mr. Butola also clarified that they were looking for a partner who has experience in setting up an LNG plant.

On the proposed 500-MW power plant, CPCL MD Mr. K Balachandran said they would hold discussions with state-owned Neyveli Lignite Corporation.

“It is progressing very well... we will have a separate discussion with NLC for a joint project.. we wanted to be sure on the configuration, pricing and viability of the plant. It is progressing well on that," he said.

On the Brownfield project which envisages setting up a nine MMTPA refinery to replace Refinery-I unit (2.8 MMTPA) at Manali at a projected cost of Rs 14,000 crore, he said it was progressing well.

“We need to fine tune in certain areas. The process configuration will be chosen in such a way that the new units could be integrated with the existing refinery complex. The project report should be out in the next three months”.

On the capex plans for fiscal 2011-12, he said the company has fixed a capex of Rs 1,335 crore.

“This year our capex is Rs 1,335 crore, which includes a plan outlay of Rs 1,053.90 crore”, he said.

Referring to the results, Mr. Balachandran said CPCL reported net profit for the fourth quarter ending 31 March 2011 at Rs 314.11 crore, against a net loss of Rs 61.06 crore in the corresponding period of the previous year.

For the year ending 31 March 2011, the net profit dipped to Rs 511.52 crore as against Rs 603.22 crore in the corresponding period of the previous year.

“The marginal loss was due to the one-time tax refund of Rs 149 crore. Even if you remove that amount we have reported profits”, he said on the dip in the net profits.

IOC chairman, Mr. Butola also praised CPCL for its results, saying the company has “bounced back to report profit. Fiscal 2010-11 has ended significantly in many ways for CPCL”.

Net sales for the quarter ending 31 March 2011 stood at Rs 10,310.34 crore as against Rs 5,465.26 crore reported in the corresponding period of the previous year.

For the year ending 31 March 2011 net sales grew to Rs 33,107.82 crore from Rs 24,972.63 crore reported in the corresponding period of the previous year, he added.

At the board meeting on the same date, the directors recommended a dividend of 120 per cent for 2010-11, he added.