'Amma' backs Ennore LNG terminal and pipeline

Vol 19, PW 21 (30 Jun 16) Midstream & Downstream

After a successful meeting with Tamil Nadu chief minister Jayalalithaa, IndianOil is confident it can begin work on a proposed 1167-km R-LNG evacuation pipeline from its proposed Ennore LNG terminal in Tamil Nadu to Bengaluru in Karnataka.

PETROWATCH learns IOC is planning to issue a tender to buy X-70 grade pipe for the pipeline in October or November this year (2016). This is good news for pipe supply contractors like Welspun, Man Industries, Essar Steel, Jindal Saw Pipe and several Chinese companies who an IOC source says have been asking about the tender.

And it's all possible because supporters of Jayalalithaa or 'Amma' as she is fondly called have finally stopped disrupting construction work at the Ennore LNG terminal site. "There have been no further agitations at the Ennore terminal site for the last two months," reports a contractor.

"An IOC team met Amma. They did a lot of CSR (Corporate Social Responsibility) work in the state.

Things have changed since then." IndianOil is also aiming to issue a tender by June 2017 to lay the pipeline. "We have a very tight schedule," says an IOC source.

"We would like the selected contractor to lay the pipeline within 18 months of award." IOC adds that the Tamil Nadu state government has already appointed 'competent authorities' or local officials to help with land acquisition for the pipeline project. "We have requested the Karnataka government to also appoint a 'competent authority'," we hear.