By the end of 2013, Indian Oil Corp (IOC) plans to begin work on its liquefied natural gas (LNG) terminal project at Ennore near Chennai.
The proposed terminal would be used to import natural gas from abroad and sell it in India, which faces severe shortage of the fuel. IOC is in the process of securing consumers for the gas imported from the terminal. IOC may secure customers like Madras Fertiliser, Chennai Petroleum and some auto industries in the region.
The LNG terminal may be ready by 2016-17, reports indicate. The company is holding discussion with leading companies like Russia's Gazprom to source gas for the Ennore plant.
IOC has also signed an initial deal with Dhamra Port Ltd to build a 5 million tonne per year LNG plant in eastern Orissa state.
The firm may use 2.5 million tonne of LNG from the Orissa terminal for its planned 300,000 barrels per day Paradip refinery and its existing Haldia and Barauni refineries.