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Tamil Nadu needs 2 LNG import terminals

Tamil Nadu needs 2 LNG import terminals
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The Tamil Nadu government estimated that it needs two liquefied natural gas (LNG) import terminals of 5 million tonne each, including the proposed Ennore LNG terminal to meet gas demand.

The state government plans to use LNG in order to reduce its dependence on coal-based power projects and help address its energy security.

In this regard, the Tamil Nadu Industrial Development Corporation earlier entered into an agreement with GAIL, for a Rs 6,000-crore LNG distribution network in the state as part of the Ennore LNG import terminal.

The terminal project is now awaiting environmental clearance. TIDCO is implementing the project with IOC. GAIL and TIDCO are also to jointly set up a 500-mw, Rs 2,000-crore LNG-based power project with provision to expand generation capacity through an additional investment of Rs 10,000 crore.

Also, last year, the state government had announced that GAIL would set up a Rs 1,000-crore LNG distribution pipeline network to distribute LNG to industrial consumers in the region using gas from the Kochi-Bangalore LNG pipeline.

The plans also included a Rs 500-crore LNG pipeline between Salem and Cuddalore to carry 6 million cubic metre of gas daily; and a floating storage regasification unit in south coastal Tamil Nadu at a cost of Rs 2,500 crore.

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