IOC looking for third partner for proposed LNG terminal
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 corer, a top official said in Chennai on May 24.

IndianOil and Chennai Petroleum Corporation are setting up the five million metric tonnes per annum (MMTPA) capacity terminal for supply of regassified 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”, IOCL chairman RS Butola told reporters after announcing group company Chennai petroleum Corporation Ltd’s results.

Stating that the project was “well on course”, he said they have 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.

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

On the proposed 500 MW power Plant, CPCL MD 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, Balachandran said CPCL reported net profits for the fourth quarter ending March 31, 2011 at Rs 314.11 crore against a net loss of Rs 61.06 crore in the same period of the previous year. For the year ending March 31, 2011 the net profits dipped to Rs 511.52 crore as against Rs 603.22 crore in the same period of previous year.