"We have reserved 50 per cent stake in the 5 million tons a year liquefied natural gas (LNG) import project for strategic partner. Till we get a strategic partner, we have decided to get financial institutions onboard to achieve financial closure," a company official said.
A joint venture company is being incorporated for setting up of the project. IOC would hold 45 per cent stake in the company while Tamil Nadu government enterprise, TIDCO will have 5 per cent holding.
Till a strategic partner is roped in, ICICI and IDFC have agreed to hold 50 per cent interest.
"The joint venture company will be initially incorporated with a seed capital of Rs 1 lakh... Of which IOC's investment would only be Rs 45,000 at present," he said.
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As the project activities progress, the strategic joint venture partners would be identified and inducted as equity partners.
Ennore will be the third LNG terminal on the east coast with state-owned GAIL India Ltd building a facility at Kakinada in Andhra Pradesh and Petronet LNG Ltd proposing a 5 million tons facility at Gangavaram in Andhra Pradesh.
LNG is a gas that is cooled down to liquid form and takes up just 1/600th of the volume in its gaseous state, thereby easing transportation by sea.
The official said IOC will lay a 1,175 km of pipelines to transport the gas imported at Ennore LNG terminal to customers.
The company has made an application to sector regulator Petroleum & Natural Gas Regulatory Board (PNGRB) for laying natural gas pipeline from Ennore to Nagapattinum in Tamil Nadu with spurlines to Madurai, Tuticorin and Bengaluru.
UK-based Foster Wheeler is project consultant for the Ennore terminal.