The Hindu Business Line : GAIL to pick up 33% stake in IOC's LNG terminal

GAIL (India) Ltd will take a 33-per cent stake in the liquefied natural gas (LNG) import terminal proposed to be set up by Indian Oil Corporation (IOC) and its subsidiary Chennai Petroleum Corporation Limited (CPCL) at Ennore port in Tamil Nadu.

"GAIL is to take a 33-per cent equity participation in the Ennore regassification terminal. It will also undertake marketing of three million tonnes of regassified-LNG (R-LNG) from the Ennore terminal," the company said in a statement here.

IOC plans to build the terminal to cater to the fuel needs of its subsidiary, CPCL, and to supply re-gassified LNG to prospective industries in Tamil Nadu and Karnataka, which are willing to switch over from liquid fuel to natural gas.

Ennore power station, North Chennai power station, Tuticorin power station and Mettur power station are some of the potential customers of the Ennore LNG terminal.

"GAIL would also construct, own and operate the entire pipeline required for marketing of R-LNG from the Ennore terminal," the statement said.

IOC has invited bids for buying 2.5 million tonnes per annum of LNG for 20 years with a possibility of doubling the quantity.

GAIL is undertaking a detailed feasibility study for the Ennore LNG terminal.

"A major advantage of this terminal is that LNG could be sourced from multiple countries like Malaysia, Indonesia and Australia," GAIL said.

"Discussions are also in progress with Tata group which had evinced interest in setting up an integrated power plant with LNG import terminal," an official said.

GAIL has proposed a Coimbatore-Erode-Salem-Dharampuri pipeline besides the Chennai-Bangalore and Chennai-Tuticorin lines to transport regassified LNG. Besides, a local network of 163-km (Kuttalam-Narimanan- Kovilallapal-Perungulam- Bhuvanagiri) is under implementation, the statement said.

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