"IndianOil LNG Announces ₹3,400 Crore Investment to Double Ennore Terminal Capacity"

IndianOil LNG Private Limited (IOLPL), a joint venture company of Indian Oil Corporation Limited (IOCL), is set to undertake a significant ₹3,400 crore investment to double the capacity of the Ennore LNG Terminal, located within the Kamarajar Port in North Chennai. This expansion aims to boost the terminal's capacity to 10 million tonnes per annum (MTPA) and is a response to the growing demand for natural gas in the Ennore catchment area in North Chennai, which is anticipated to exceed 5 MTPA by 2025-26.

IOLPL was established in 2015 with the primary objective of executing the Ennore LNG import, storage, and regasification terminal project. The facility currently has a capacity of 5 MTPA and includes provisions for expansion up to 10 MTPA, all situated within the Kamarajar Port, previously known as Ennore Port. Notably, the Ennore LNG Terminal was the first LNG terminal to be established on the eastern coast of India.

The enhanced capacity of the LNG import and regasification terminal will be pivotal in supplying clean energy in the form of Regasified Liquefied Natural Gas (RLNG/GAS). It is anticipated to stimulate industrial growth in the regions of Tamil Nadu, Andhra Pradesh, and Karnataka, in accordance with project documents.

The regasified LNG produced from this expansion will be distributed to various end-users, including power generation plants, fertilizer plants, and other industrial facilities. Additionally, the gas will be made accessible for city gas distribution, catering to the needs of the transport sector, commercial enterprises, and residential cooking through Piped Natural Gas (PNG).

The proposed expansion project will encompass the development of a 20 million standard cubic meters per day (MMSCMD) LNG storage and regasification facility. The project is also subject to Coastal Regulatory Zone clearance. The Environmental Impact Assessment and Rapid Risk Assessment studies for the proposed expansion are being prepared by Engineers India Ltd, as indicated in project documents.

Crucially, the expansion project will not require additional land acquisition, as all the proposed facilities will be constructed within the existing LNG Terminal complex area. The total area of the Ennore LNG terminal currently spans 128 acres, with 42.24 acres designated as the existing green belt area.

According to the project documents, the expansion project is projected to be completed and commissioned within a span of 54 months following the board's approval. This ambitious endeavor signifies a substantial step towards meeting the rising demand for natural gas and bolstering industrial growth in the southern regions of India.

HBL