IOC to set up LNG terminal in Chennai

March 22nd, 2012 - 7:57 pm ICT by IANS  

Chennai, March 22 (IANS) The Indian Oil Corporation Ltd (IOC) is confident of setting up its Rs.4,500 crore, five million tonne per annum (tpa) liquefied natural gas (LNG) terminal in Chennai by 2015 partnering with Tamil Nadu Industrial Development Corporation (TIDCO), said an official Thursday.

“The LNG terminal will be in modular form. The initial capacity will be five million tpa and we can double the capacity later,” R.S. Butola, IOC chairman told reporters here after signing an agreement with TIDCO for the purpose.

He said the mode of funding the project cost - ratio of debt to equity - is being worked out.

“TIDCO will take a small percentage stake between 5-10 percent in the project,” Butola said.

IOC and TIDCO signed the agreement in the presence of Chief Minister J. Jayalalithaa who had earlier released the state’s Vision 2023 document.

According to Butola the LNG terminal will be completed by 2015.

“We will import LNG and there are various sources. We are also looking at entering into long-term LNG supply contract,” Butola said.

According to him, southern India does not have adequate supplies of piped gas and the project will address this gap.

The project will come up on 132 acres in Ennore here.

“We have got some fiscal incentives from the state government for the project,” Butola said.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |