Work progressing on IOC's Ennore Liquefied Natural Gas terminal
Chennai   25-May-2011

IndianOil (IOC) is going ahead with its Liquefied Natural Gas terminal at Ennore, even as it is scouting for a strategic partner, who can bring in resources and technical expertise, its Chairman R.S. Butola said here on Tuesday.

Talking to The Hindu, he said that the project work had started and was on track. He expressed the hope that it would be completed on time.

During August 2010, IOC had entered into a memorandum of understanding with the Tamil Nadu Industrial Development Corporation to set up a Rs.4,320 crore LNG terminal with a capacity of 5 MMTPA (million metric tonnes per annum) for supply of re-gassified natural gas.

The work on this terminal started a year ago and would be commissioned by 2014-15.

Chennai Petroleum Corporation Ltd (CPCL) Managing Director K. Balachandran told reporters that the company was proposing to set up a brownfield 9 MMTPA refinery to replace the Refinery-1 unit (2.8 MMTPA) at Manali for which 70 to 80 per cent of the project feasibility report has been completed.

He also said that 114-km product pipeline between CPCL-Cauvery Basin Refinery (CBR) and IOC at Tiruchi was being implemented by the parent company at a cost of Rs.98 crore for speedy evacuation of diesel produced at CPCL's refinery at Panangudi near Nagapattinam.

“The project was launched four months ago. It is an 18-month project and will be implemented next year,” he said.

“CBR is implementing Rs.10 crore crude oil pipeline project from Karaikal Port to Panangudi. The project work has begun and the facility would be commissioned by the end of this year.”

CPCL was awaiting environment clearance to kick start the Resid upgradation project to improve the distillate yield of Manali Refinery. The Rs.3,110.36 crore project is expected to be completed in 33 months from the date of environment clearance.

According to Mr. Balachandran, CPCL was also expecting final central Coastal Regulation Zone clearance to lay new crude oil pipeline from Chennai Port to Manali Refinery. The Rs.126 crore project was envisaged to replace the existing 30” pipeline with 42” pipeline. The project timeframe was 18 months from the launch date.