IndianOil to build Rs 4,500 crore LNG Terminal in TN
New Delhi   24-Mar-2012

The Rs4, 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 IndianOil official.

Speaking to reporters after signing an agreement with the Tamil Nadu government in the presence of Chief Minister J Jayalalithaa here on Thursday, Chairman of IndianOil R S Butola said that IndianOil in partnership with Tamil Nadu Industrial Development Corporation (TIDCO) will strive to complete the five million tonne per annum (tpa) LNG terminal by 2015.

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

“Southern India does not have adequate supplies of piped gas and the project will address this gap,” he 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, after the release of Vision 2023 document.

He said TIDCO will have a 5-10 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 IndianOil is looking at entering into long term LNG supply contract.