IOC directors to consider Dhamra LNG project

Vol 16, PW 10 (29 Nov 12) News in Brief

IndianOil is making progress with its plans to construct a 5m t/y LNG terminal at Dhamra in Orissa.

IOC’s refinery and gas business divisions have put together a proposal for the board to consider at its next meeting in January. “Our in-house team has assessed the local gas demand in the area,” says a senior company source.

“It can easily support gas demand of up to 3.5m t/y.” IOC’s under-construction 15m t/y Paradip refinery in Orissa is expected to consume up to 8m cm/d of gas.

IOC has been allocated 1.6m cm/d of D6 gas on a ‘fall back’ basis, which means it can take the gas only if and when supplies are available. “We have no hope of getting D6 gas as production is declining,” says IOC.

“That’s why we want our own LNG terminal.” If the board approves Dhamra, IOC will issue a tender to prepare a Detailed Feasibility Report.

IOC sees its 7.5m t/y Haldia and 6m t/y Barauni refineries as anchor gas customers for Dhamra.