Indian Oil Corporation (IOC), which has proposed to set up a Rs 4,320-crore liquefied natural gas (LNG) plant at Ennore would soon enter into an agreement with the Ennore Port to secure 132 acre of port land for the project.
The project would enable supply piped gas in the southern region, which does not have adequate supply of piped gas.
Both the parties would also sign a commercial agreement that would include details such as revenue share and port-related charges, reports indicate.
Ennore Port received the clearance of union cabinet last month for leasing land to a joint venture led by IOC for 30 years.
The proposed project includes setting up an LNG storage and regassification plant with a capacity of 5 million tonne per annum (mn tpa).
IOC had already signed an agreement with the Tamil Nadu Industrial Development Corporation (Tidco) for the project.
IOC will start construction of wharf, pipeline, regassification plant, tie up with gas suppliers and bring gas liners to Ennore after the agreement is signed. IOC wanted the plant to start functioning in the next three years, reports indicate.
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