Chennai Petroleum can take 0.6m t/y Ennore LNG

Vol 9, PW 4 (01 Jun 05) News in Brief
     

Indian Oil is counting on its subsidiary Chennai Petroleum to consume more than 20% of the regassified LNG from its proposed 2.5m t/y LNG terminal at Ennore.

A senior source at Chennai Petroleum confirms to this report that it can offtake up to 600,000 tonnes a year of R-LNG for use in the refining process to heat crude before it is fed into the distillation columns. He said using R-LNG instead of fuel would enable the refinery to save money by buying less-expensive high sulphur crude.

Not yet clear is when IOC will begin work at Ennore, or where the LNG will come from. What is clear is that IOC no longer believes it imperative to have a power plant to provide the anchor load for its LNG terminal.

An earlier LNG initiative at Ennore promoted by the Dakshin Bharat Energy Consortium collapsed when promoters failed to secure payment guarantees for a proposed 1850-MW captive power plant linked to the project.