Indian Oil to Hold 45% Stake in Ennore LNG Terminal

Indian Oil Corp (IOC) will hold 45 per cent stake in the planned LNG import terminal at Ennore in the southern Indian state of Tamil Nadu and 50 per cent interest will be offered to financial institutions, reported Press Trust of India.

"We have reserved 50 per cent stake in the 5 million tons a year liquefied natural gas (LNG) import project for strategic partner. Till we get a strategic partner, we have decided to get financial institutions onboard to achieve financial closure," a company official said.

A joint venture company is being incorporated for setting up of the project. IOC would hold 45 per cent stake in the company while Tamil Nadu government enterprise, TIDCO will have 5 per cent holding.

Balance 50 per cent will be for a strategic partner like LNG supplier, the official told Press Trust, adding that the project will be completed by 2019.

Till a strategic partner is roped in, ICICI and IDFC have agreed to hold 50 per cent interest.

Ennore will be the third LNG terminal on the east coast with state-owned GAIL India Ltd building a facility at Kakinada in Andhra Pradesh and Petronet LNG Ltd proposing a 5 million tons facility at Gangavaram in Andhra Pradesh.

India currently has four LNG import terminals, all on the west coast -- Dahej and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in Kerala.