Indian Oil Corp boosting LNG business, plans to launch Ennore terminal in 2018-19

India’s biggest refiner, Indian Oil Corp, is rapidly expanding its presence in the liquefied natural gas business and plans to commission its Ennore LNG terminal in southern India in 2018-19.

The company is building a 5 million tonnes a year LNG terminal at Kamarajar Port, Ennore near Chennai.

The start-up of this first LNG regasification terminal on the country’s east coast would mark “a major milestone” in Indian Oil’s efforts to scale up natural gas infrastructure in India, the company noted in its latest annual report.

During 2016-17, Indian Oil imported 11 cargoes of the chilled fuel, the report shows. The corporation also signed 17 deals with various international suppliers for import of LNG on spot/short-term basis.

Indian Oil said its regasified LNG (RLNG) sales were at 1.92 MMT during 2016-17, adding that the company now has in its portfolio 55 RLNG customers.

India has boosted its use of the chilled fuel since the beginning of last year on the back of lower prices after the country’s largest importer, Petronet LNG signed a revised long-term contract with Qatari LNG producer RasGas.

As co-promoter of Petronet LNG, which has set up import terminals at Dahej and Kochi, IndianOil has marketing rights for 30 percent of the LNG procured by Petronet.

India’s appetite for LNG is expected to surge over the coming years driven by the demand in the gas-to-power sector and a push by the government to increase the usage of gas in the country’s overall energy mix.

LNG World News Staff