IOC Names Petronet For Ennore Project

New Delhi: Indian Oil Corporation Ltd (IOC) is likely to appoint Petronet LNG Ltd (PLL) as partner for its proposed liquefied natural gas (LNG) import and re-gasification terminal at Ennore, Tamil Nadu. It said bringing PLL into the project will help in sourcing LNG. Non-availability of LNG under long-term contracts has been a major deciding factor in such projects. In fact, IOC has also been pursuing various LNG suppliers for long-term supply.

Only after an umbrella MoU is signed will the two companies define the exact role of each other in the project. While the companies remained tight-lipped on the proposal, indications are that besides the LNG terminal project, PLL would look for a larger role in its joint venture with IOC, including certain downstream activities in related areas. The terminal is expected to cost around Rs 3,500 crore with proposed capacity of 2.5 million tonnes (mt) per annum. Currently, there are two LNG terminals in the country, PLL''s 6.5-mt-per-annum terminal at Dahej, Gujarat, and Shell''s 2.5-mt-per-annum Hazira terminal.

Source : www.indian-commodity.com