IndianOil LNG Private Limited (IOLPL), a joint venture company of Indian Oil Corporation (IOC), is planning to invest Rs34bn ($408.39m) to expand the capacity of the Ennore LNG terminal, reported the Hindu Business Line.
Located at Kamarajar Port, Ennore, in the Indian state of Tamil Nadu, the Ennore LNG import, storage and re-gasification terminal project currently has a capacity of 5mtpa.
The proposed investment is expected to double the capacity of the terminal inside the Kamarajar port in North Chennai to 10mtpa.
Subject to Coastal Regulatory Zone approval, the expansion project will involve 20 million cubic metres a day (mcmd) of additional capacity at the LNG storage and regasification facility.
The terminal expansion aims to supply clean energy (RLNG/GAS) and meet gas demand in the Ennore catchment area in North Chennai.
It is also expected to support industrial growth in Tamil Nadu, Andhra Pradesh and Karnataka, reported the news agency, citing a project document.
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The expansion project is scheduled for completion and production is due to begin within 54 months of the date of board approval, according to the document.
Currently, the environmental impact assessment and rapid risk assessment studies for the proposed terminal expansion project are being carried out by Engineers India.
In October 2023, Press Trust of India reported that IOC plans $312.42m of investment in the next few years in greenfield projects and new facilities across the north-east region of India.
In an interview, IOC executive director Ganesan Ramesh said: “Northeast is one of the most important regions for Indian Oil and much focus is given here by the top management. We have planned to augment our operations by enhancing refining as well as petroleum, oil and lubricant storage capacities.”