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The first LNG terminal in east coast part of the country, which will be set up by Indian Oil Corporation (IOC) is expected to go onstream by the third quarter of 2017-18. The project cost has been revised to Rs 5,150 crore.
The company said it plans to enter into a strategic partnership to source natural gas.
Speaking to reporters in Chennai today, B Ashok, chairman, Indian Oil Corporation said that the Board has approved the LNG terminal project with an investment of Rs 5,150 crore.
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The original cost estimate was Rs 4,500 crore.
He added, by third quarter of 2017-18 the project will go onstream. Total capacity would be five million tonnes and can be expanded to ten million tonnes.
Ashok said to source two million tonnes of natural gas IOC has tied up with British Columbia province, Canada.
IOC has taken up 10% stake with an investment of $4 billion.
"Our share would be 1.2 million from this plant. Besides another 0.7 million will be sourced from Cameron project in US".
Ashok said IOC will be looking at long-term sourcing and spot sourcing for LNG.
The terminal would cater to both domestic and industrial purpose, he added.
Speaking about Paradip refinery, Ashok said 97% of the work is over and first unit of the refinery is expected to go on stream by March 2015.
"We are exploring to set up a pipeline from Paradip to Vishakapattinam and will connect Hyderabad," said Ashok.
