The Indian Oil Corporation Ltd (IOC) today signed an agreement with Tamil Nadu Industrial Development Corporation (TIDCO) to set up a Rs 4,500 crore liquefied natural gas (LNG) terminal in Chennai.
The initial capacity of the facility will be five million tonne per annum (tpa).
“The LNG terminal will be in modular form, with an initial capacity of five million tpa and can be doubled later,” R S Butola, chairman, IOC told reporters after signing a MoU with TIDCO, infront of Tamil Nadu Chief Minister J Jayalalithaa, who had earlier released the state’s Vision 2023 document at Chennai today,
He said the mode of funding the project cost – ratio of debt to equity– is being worked out.
“They (TIDCO) will take a small per centage stake between 5-10 percent in the project,” Butola said. “The project also got some fiscal incentives from the state government for the project,” he added.
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,” he added.
Southern India does not have adequate supplies of piped gas and the project will address this gap, he said. The project will come up on 132 acres in Ennore here.
