Indian Oil to Commission India Terminal This Month

State-owned Indian Oil Corporation will soon commission its first LNG receiving terminal located at Ennore in the southern state of Tamil Nadu, Press Trust of India reported January 2.

Indian Oil chairman Sanjiv Singh said terminal is complete and would be commissioned after completion of dredging of the channel that will bring cryogenic ships carrying natural gas in its liquid form to the port.

"We hope to commission the facility this month," Press Trust of India quoted him as saying. Once dredging is complete, the company will bring a cargo to commission the terminal, he added.

Indian Oil holds 95% stake in the Ennore LNG import terminal; Tamil Nadu Industrial Development Corporation has the remaining 5%. According to Press Trust of India, Indian Oil wants to retain a minimum 50% stake in the project and so, practically 45% stake is up for grabs.

As the second-largest natural gas player in the country, Indian Oil is making significant investments in natural gas infrastructure and marketing, in line with the country's changing energy mix.

"We already have investments across the gas value chain, from LNG import terminals to city gas distribution networks," Singh said.

The company plans to connect the Ennore terminal to its Chennai Petroleum Corporation refinery apart from facilities of Madras Fertilisers, Tamil Nadu Petro Products, Manali Petrol Products, and other customers in the area.