Chennai: State-owned Indian Oil Corporation's board has cleared the Rs 5,150-crore Ennore-LNG Terminal project to be set up jointly with the Tamil Nadu government, a top official said on Wednesday.
"The Board has given the approval for the Ennore LNG Terminal, to be set up at a cost of Rs 5,150 crore. We have received the approvals for the project. We also have appointed the project management consultant," IOC chairman and managing director B Ashok told reporters here.
The land for the project has been acquired and the plant will have 5 million tonne capacity, he said, adding, "Very soon, we will start the project in Ennore."
IOC and Tamil Nadu Industrial Development Corporation had signed pacts two years ago for setting up the terminal.
"It will be the first LNG Import terminal to be located on the East Coast of India... It will play a major role when the terminal is in place," he said.
The terminal is expected to be commissioned by 2017.
Mr Ashok also said that Indian Oil, which has stakes in British Columbia and Petronas in Malaysia, would look for import of LNG once the Ennore plant comes into operation.
While Indian Oil holds a 45 per cent stake, 5 per cent is with TIDCO and the remaining 50 per cent with investors.
The company is also in discussions with several companies for a joint venture on the Ennore-LNG Terminal project.
"Discussions are going on. Nothing has come to the table yet," he said.
On the status of LPG project in Tamil Nadu, he said the Rs 78-crore LPG plant is expected to soon be commissioned in Tirunelveli.
Asked whether IOC would effect a cut in petrol prices following the dip in crude prices, he said, "We are closely monitoring the crude oil prices every day. It is a complex situation we have. We will take a decision on that day."
On the Paradip Refinery project, he said 97 per cent of it was completed and was expected to be commissioned by March 2015.
On whether the company would look at setting up new projects in Andhra Pradesh, he said the oil major was looking at setting up a pipeline, connecting Paradip to Hyderabad.
He said IOC was evaluating the possibilities of merging Chennai Petroleum Corporation Ltd with it.
"We are evaluating all options. Ultimately that is the direction we have to go."
IOC has set up a toll free number 1800-233-3555 for receiving complaints related to supply of LPG.