IOC scouting for 3rd partner for proposed LNG terminal
New Delhi   25-May-2011

IndianOil (IOC) is scouting for a third partner for its proposed LNG terminal at Ennore in Tamil Nadu with a project cost of Rs 4,320 crore. IndianOil and Chennai Petroleum Corporation (CPCL) are setting up a 5 million tonnes per annum (MMTPA) capacity terminal for supply of regassified natural gas. The CPCL and IOC have already signed an agreement for supply of LNG.

“We are scouting for a partner for this project. Currently we are talking to many companies who can become our partner,” IOCL chairman RS Butola told media persons on the sidelines of announcing group company CPCL’s result . The project was well on course, but they have not taken any decision on the partner, he said adding that they are looking for partner who has experience in setting up an LNG plant.

IOC Rs 23.36-crore augmented lube base oil bulk storage facility at Tondiarpet, Chennai, was inaugurated on Monday. The terminal will largely cater to bulk volume customers of lube base oils used in the manufacture of finished lubricants. The facility will commence operations with an initial output of 4000 tonnes per month, which will be gradually raised to 8,000 tonnes per month on addition of more grades such as process oils among others.

Meanwhile, CPCL is gearing itself to receive natural gas for its heaters and boilers and also for its power plant ad hydrogen generation units. CPCL MD K Balachandran said that they would hold discussions with state-owned Neyveli Lignite Corporation for the proposed 500 mw power plant. “It is progressing very well… we will have a separate discussion with NLC fro a joint project. We wanted to be sure on the configuration, pricing and viability of the plant, “he said.

On the brownfield project which envisages setting up a 9 MMTPA refinery to replace Refinery – I unit (2.8 MMTPA) at Manali at a projected cost of Rs14, 000 crore, he said it was progressing well.

“We need to fine tune in certain areas. The process configuration will be chosen in such a way that the new units could be integrated with the existing refinery complex. The project report should be out in the next three months. ” CPCL has firmed its capex plans of Rs. 1, 335 crore for fiscal 2011-12, which includes a plan outlay of Rs.1,053. 90 crore.