Indian Oil Corporation has finally decided to set up a LNG (liquified natural gas) terminal at Kattupalli near Chennai with an estimated investment of R4,500 crore over the next three to four years.
As part of this, IndianOil has entered into an agreement with Tamil Nadu Industrial Development Corporation (Tidco) on Thursday in the presence of chief minister J Jayalalithaa on the occasion of TN ?Vision 2023? document release.
The terminal will come within Ennore port premises on a sprawling 130 acres of land. ?We have got board approval for this LNG terminal and we hope the project will come up by end 2015 or early 2016,? said RS Butola, chairman, IndianOil.
Butola said, ?Currently, IndianOil is undertaking a study on this project and we will finalise plans to award contracts in the next two to three months. The project will bet set up with an estimated investment of R4,500 crore and will have an initial capacity of 5 million tonne.?
To a question, he said, ?The project will come up under JV with Tidco, wherein the latter is likely to hold anywhere between 5% and 10% stake. The terminal will have berth, regasification and storage facilities among other facilities.?
To a specific question on any incentives from the state government, he said, ?Of course, we are getting some fiscal incentives.? He, however, declined to elaborate further.