10 April 2013 07:29 [Source: ICIS news]
KOLKATA (ICIS)--Indian Oil Corp Ltd (IOC) plans to build a 5m tonne/year storage and re-gasification terminal for imported liquefied natural gas (LNG) at Ennore in Tamil Nadu province, a company official said on Wednesday.
The company is currently seeking a turnkey engineering, procurement and construction (EPC) contractor for the project to be located in southern India, the official said.
The LNG terminal project is estimated to cost around $793m, he said.
Commissioning of the project is scheduled within 36 months from the start of construction, the IOC official said.
There are plans to eventually increase the terminal’s capacity to 10-15m tonnes/year but no definite timeline has yet been set for the expansion, he said.
IOC is also considering taking a strategic foreign investor for the Ennore LNG terminal to ensure long-term gas supply.
Russian gas major Gazprom has submitted a proposal to take a 21-26% stake in the terminal project in lieu of an LNG supply contract, according to the official.
A final decision on overseas equity participation would be taken closer to commissioning date of the terminal in 2016, the IOC official said.
IOC had also drawn up plans to build a 1,175-kilometre (km) pipeline connecting the Ennore LNG terminal to various consuming industries in southern and south-eastern regions of India.
The Ennore terminal would be the third LNG storage project along India’s eastern coastline. GAIL India is working on a project at Kakinada, while Petronet LNG Ltd has a project at Gangavaram – both in southern Indian province of Andhra Pradesh.
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