IndianOil LNG Private Limited (IOLPL), a joint venture company of Indian Oil Corporation Limited (IOCL), will invest ₹3,400 crore to double the capacity of the Ennore LNG Terminal inside the Kamarajar port in North Chennai to 10 million tonnes per annum (MTPA).

The expansion is to meet the demand for gas in the Ennore catchment area in North Chennai, which is expected to increase beyond 5 MTPA in 2025-26.

IOLPL was incorporated in 2015 to implement the Ennore LNG import, storage, and regasification terminal project. The facility at present has a 5 MTPA capacity with provision to expand up to 10 MTPA inside the Kamarajar Port (formerly known as Ennore Port). The Ennore LNG Terminal was the first LNG terminal on the eastern coast of India.

The LNG import and regasification terminal of enhanced capacity will supply clean energy (RLNG/GAS). It will spur industrial growth in Tamil Nadu, Andhra Pradesh and Karnataka, according to the project document.

The regasified LNG will be distributed to power generation plants, fertiliser plants and other industrial units. The gas will also be made available for city gas distribution, including the transport sector, commercial sector and for cooking in houses (PNG – Piped Natural Gas).

The proposed expansion project will involve 20 million standard cubic meters a day (MMSCMD) LNG storage and Regasification facility. The project will also require Coastal Regulatory Zone clearance. Engineers India Lit is preparing the Environmental Impact Assessment and Rapid Risk Assessment studies of the proposed expansion, the document says.

For the proposed expansion project, no additional land is required. All the proposed project facilities are coming up within the existing LNG Terminal complex area. The total area of the Ennore LNG terminal is 128 acres. The existing green belt area of the terminal is 42.24 acres.

The expansion project is expected to be completed and commissioned in 54 months from the date of board approval, the document says.