IOC wants term LNG

Vol 14, PW 6 (09 Sep 10) News in Brief
     

IndianOil is hunting for ‘term’ LNG to feed its proposed 2.5m t/y LNG receiving terminal at Ennore port in Tamil Nadu – the first on India’s east coast.

Among those IOC is believed to have approached are ExxonMobil, Chevron and Shell. “Without a firm anchor supply of LNG,” says a source, “IOC won’t be able to reach financial closure.

” Last month IOC chairman BM Bansal signed a MoU with Tamil Nadu state-owned TIDCO for a 2.5m t/y LNG receiving terminal and 1000-MW captive power station by 2014-15 at a cost of Rs8000cr ($1.6bn). “IOC is looking for anything it can get,” we hear, “to take advantage of prevailing ‘soft’ LNG prices.

” Uncertainty over D6 gas is driving IOC’s ambition. “Realism is creeping in about the future domestic availability of D6 gas,” adds a source.

“D6 gas reaching Chennai today is a lot less likely than it was a few years ago.” Three years ago IOC blamed the D6 discovery for its decision to abandon an earlier LNG proposal at Ennore.

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