IndianOil signs MoU with TIDCO for Ennore LNG Project

Aug. 9, 2010 - PRLog -- IndianOil, India's largest commercial enterprise and the leading Indian company on the Fortune Global 500 listing, has signed an MoU with Tamil Nadu Industrial Development Corporation Ltd. (TIDCO) to set up an LNG re-gasification terminal and gas-based Power Plant at Ennore and gas pipelines for distribution.

The MoU was inked today by Mr.B.M.Bansal, Chairman, IndianOil and Mr.Rajeev Ranjan, Principal Secretary, Department of Industries & Chairman, TIDCO in the presence of Dr.Kalaignar M.Karunanidhi, Hon'ble Chief Minister of Tamil Nadu and Mr.M.K.Stalin, Hon'ble Deputy Chief Minister of Tamil Nadu.

With a potential to transform the energy landscape of Tamil Nadu, Karnataka, Andhra Pradesh and Puducherry, this MoU encompasses setting up a 2.5 million tonnes per annum LNG terminal expandable to 5 million tonnes per annum which will cost Rs.3000 Crore approximately. A 1000 MW LNG based Power plant that is likely to cost around Rs.5000 Crore will be anchor customer and will come up adjacent to the Terminal. Driven by the LNG re-gasification terminal and gas-based power plant, Ennore will become a Special Economic Zone that will spawn a grid of gas pipelines criss-crossing the demand centres across Tamil Nadu and other Southern States. This will spur city gas distribution and boost industrial activity in the region. The Ennore gas terminal is expected to be commissioned by the year 2015.

Under the MoU, IndianOil and TIDCO will jointly set up the LNG import and re-gasification terminal including marine facilities, LNG based Power Plants, Gas Grid in Tamil Nadu, in addition to participating in city gas distribution business in the state of Tamil Nadu with total investment of around Rs.10,000 Crore.

# # #

IndianOil Corporation Ltd is India's largest commercial enterprise. The IndianOil Group of companies owns and operates 10 of India's 20 refineries.