Union shipping ministry has reportedly sent a proposal to set up a Rs 4,320-crore integrated liquefied natural gas (LNG) terminal at Ennore, near Chennai to the cabinet for approval.
It may be learnt that the project was approved by the shipping ministry recently.
Indian Oil Corporation, which plans to construct the terminal, would receive a letter of award from the Ennore Port once the cabinet clears the proposal.
Tamil Nadu Industrial Development Corporation signed an agreement with the IOC for the project, which will be spread across 132 acre.
Southern India does not have adequate supply of piped gas and the project at Ennore will address this gap. The LNG project had been under consideration at least for over a decade, initially by Tidco as part of its Petrochem Park project and later by Ennore Port. However, the project did not take off “but now the government is serious to keep the ball rolling, reports indicate.
Five 2years ago, EPL accorded ‘in-principle’ approval to IOC to put up the terminal on a joint venture basis but no concrete action has yet occurred, says the business plan prepared for the Ennore port.
IOC will import LNG from various sources. The terminalÂ’s capacity at the port will be able to handle 5 million tonne a year.
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