Orissa gas study at IOC

Vol 15, PW 23 (31 May 12) News in Brief

IndianOil has begun studying potential gas demand for its proposed 5m t/y LNG terminal at Dhamra in Orissa.

“We decided against hiring an external consultant as we have enough expertise to carry out the study ourselves,” says a company source. “The results should be ready by August or September.

” IndianOil reckons most demand will come from its own facilities, not local electricity plants. For instance the under-construction 15m t/y refinery at Paradip might absorb as much as 50% of the Dhamra LNG terminal’s capacity.

“Paradip will also have a petrochemical complex that needs gas,” we hear. More, the company’s 7.5m t/y Haldia refinery in West Bengal and 6m t/y Barauni refinery in Bihar together need 8m cm/d.

“Many factories want to replace liquid fuels like naphtha with gas,” we hear. Among them is West Bengal-based Haldia Petrochemicals, also a potential customer.

Further down the coast IndianOil is likewise planning a 5m t/y LNG terminal at Ennore in Tamil Nadu.