Kamarajar port to sign deal with IOC for LNG terminal
New Delhi   01-Dec-2015

Kamarajar Port Ltd (KPL) at Ennore here and Indian Oil Corporation (IOC) are likely to sign a concession agreement in February for a ?5,150-crore LNG import terminal at the port. The agreement is likely to be signed during the Maritime India Summit 2016, to be held in Mumbai.

“We are in the process of finalising the draft concession agreement,” KPL Chairman MA Bhaskarachar told BusinessLine.

The terminal, expected to become operational by early 2018, will have a capacity of 5 million tonnes per annum for storage and regasification.

IOC and KPL had signed a memorandum of understanding (MoU) to set up the terminal on March 1, 2014.

The Union Cabinet has allowed KPL to lease land for the terminal being built by a joint venture led by IOC, which will have a majority stake. IOC had obtained environment clearance and is in the process of selecting EPC contractors.

IOC plans to build a captive jetty at Kamarajar port to handle petroleum, oil and lubricants, LPG products and lube oil base stock in bulk in Tamil Nadu and neighbouring States. IOC and KPL signed an MoU for this project today.

The jetty will achieve a capacity of 3-3.5 MMTPA by fifth year of operation. KPL has earmarked water front for the LNG jetty and land for the storage and re-gasification terminal. KPL had given in-principle consent to IOC to set up the jetty, which will be 300 m in length, says a release from KPL.