IOC to rope in strategic partner for Ennore LNG terminal

Public sector Indian Oil Corporation Ltd (IOC) will bring in a strategic partner into Indian Oil LNG Pvt Ltd (IOLPL), which is setting up a 5 mtpa LNG regasification terminal at Kamarajar port at Ennore in Chennai.

This is being done to give an exit route to the two banks that hold stake in IOLPL, said a report in BusinessLine.

While IOC holds 50 per cent of the equity in the Rs 4,300-crore LNG regasification terminal, two financial partners – IDFC Bank and ICICI Bank – are holding the balance.

According to IOC Chairman Sanjiv Singh, “Along with the LNG regasification terminal, we are working on commissioning the first leg of the Ennore-Manali pipeline to supply gas to customers such as Chennai Petroleum Corp, Madras Fertilisers, Tamil Nadu Petroproducts and some other small industries.”

GK Satish, Director, Planning and Business Development at IOCLL, said, “Long-term, the Ennore LNG terminal can be scaled to 10 mt.”

Image Credit : thehindubusinessline.com

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