Construction work on Ennore LNG terminal started: IOC

Indian Oil Corporation (IOC) has begun initial works for setting up the Rs 5,150-crore LNG terminal at Ennore near here. The company had inked a MoU with the Tamil Nadu government for the project. 

IOC would hold 45 per cent stake in it while five per cent would be with the state government.

“It is a Rs 5,000-crore plus (Rs 5,150 crore) project. The latest update is that works like clearing land have already started,” IOC chairman 

B Ashok said. The company had recently issued contracts to <g data-gr-id="26">Mitsubish</g> Heavy Industries and Black and Veatch for setting up the refrigeration tankages and regasification facility at the terminal. 

“There are three major contracts for this project. One is refrigeration tankages, regasification facility and third is the marine facilities. We have already placed contracts for the first and second to Mitsubishi Heavy Industries and Black and Veatch, respectively”, he added. 

“The work has already started there like clearing of the land. It should become operational early 2018”, he said. To a query on whether there were opportunities available in Iran, he said the company has to “wait and watch” as adding more source for <g data-gr-id="28">supply</g> of crude would be “beneficiary”. 

“We have to wait and watch that market. There is a lot of cautious optimism, I would say. It will be good for India. There will be  one more additional source  of availability since we are a  consuming country,” he said.