Indian Oil to expand its LNG terminal at Kamarajar Port in Chennai

IOCL, at present, stores gas in two tanks with capacities of 1,80,000 cubic metres each. File photograph
| Photo Credit: JOTHI RAMALINGAM B

Indian Oil Corporation Ltd. (IOCL) has proposed to expand the capacity of its liquefied natural gas (LNG) terminal located inside the Kamarajar Port, in Ennore, Chennai.

At present, the terminal has the capacity to process and store 5 million metric tonnes per annum (MMTPA) of LNG. The company aims to double this capacity. This is because projected demand for LNG from the Ennore LNG Terminal is expected to increase beyond its present 5 MMTPA by 2025–26.  

No additional land would be required for this proposed project, since all facilities are to come up within the existing terminal complex area of 128 acres. The estimated cost of the project is around ₹3,000 crore.

Construction of the import, storage and regassification terminal, which is situated inside the Kamarajar Port in Ennore, began in 2015, and commenced operations in 2019. The proposed project is expected to be completed in 54 months from the date of the Board’s approval. The proposed facility will have LNG storage tanks, regasification systems, LNG pumps and vapourisers. 

The existing terminal at present, receives imported LNG through ships at a dedicated LNG Berth constructed inside the Kamarajar Port and stores the gas in two tanks with capacities of 1,80,000 cubic metres each. The gas is stored at minus 162 Degree Celsius.  

The expanded LNG import and regasification terminal is expected to supply clean energy to help industrial growth in Tamil Nadu, Andhra Pradesh and Karnataka. The re-gasified LNG will be distributed to power generation plants, fertiliser plants and other industrial units. The gas will also be made available for city gas distribution, supply to vehicles, and piped natural gas to homes.

The Ministry of Environment and Forests has prescribed Terms of Reference to Indian Oil LNG Pvt Ltd., a joint venture company of IOCL, to prepare the Environment Impact Assessment Report and to obtain environmental clearances.