IOC expects its LNG terminal to go on stream by 2018.

Indian Oil Corporation Ltd (IOCL) is expecting its new liquefied natural gas (LNG) receiving terminal at Ennore, Tamil Nadu in joint venture with Tamil Nadu Industrial Development Corporation (TIDCO), to be ready by 2018, said the company Chairman B Ashok.

Announcing the financial results of Chennai Petroleum Corporation Ltd (CPCL), which is a subsidiary of IOCL, Ashok said, 'We have given contracts for building refrigerated tanks and re-gasification facilities for the LNG terminal project'. He is also the Chairman of CPCL.

The project, which is coming up with an investment of around Rs 5,000 crore, has three components in it, which are setting up of refrigerated tanks, re-gasification facilities and marine facilities. CPCL might look at LNG as an option for the fuel used in the refinery once the availability of the gas is stable, which would also save cost to the company.

According to company sources, currently CPCL is using the fuel available from crude oil itself, to burn the crude oil in the refinery. Migrating to gas fuel is expected to help the company to save cost on fuel. LNG is an option for the fuel required in the refineries and the cost depends upon the availability of the fuel and other factors, said an official.

BS