Indian Oil Corporation (IOC) has begun initial works for setting up the Rs 5,150-crore ($830 million) liquefied natural gas (LNG)terminal at Ennore, Chennai.
LNG terminal would be ready by 2018, said the company Chairman B Ashok. The company had inked a MoU with the Tamil Nadu Industrial Development Corporation (TIDCO) for the project.
Ashok said that his company has given contracts for building refrigerated tanks and re-gasification facilities for the LNG terminal project.
The project has three components in it, which are setting up of refrigerated tanks, re-gasification facilities and marine facilities.
Chennai Petroleum Corporation Ltd (CPCL), which is a subsidiary of IOCL, might look at LNG as an option for the fuel used in the refinery once the availability of the gas is stable, which would also save cost to the company.
According to PTI, the company had recently issued contracts to Mitsubish Heavy Industries and Black and Veatch for setting up the refrigeration tankages and regasification facility at the terminal.
“The work has already started there like clearing of the land. It should become operational early 2018”, he said. To a query on whether there were opportunities available in Iran, he said the company has to “wait and watch” as adding more source for supply of crude would be “beneficiary”.