Indian Oil plans LNG terminal in Orissa

Indian Oil Corp is in talks with L&T-Tata Steel-owned Dhamra Port Co Ltd for setting up 5 million tons a year LNG terminal in Orissa, media reports said.

The facility at Dhamra port will be besides the terminal IOC is planning to set up at Ennore in Tamil Nadu.

IOC had in 2007 put on hold the 2.5 million tonnes a year LNG import-cum-regassification terminal after huge gas finds off the east coast made the project economically unviable.

But the output from Krishna Godavari basin fields falling short of the target, LNG imports are being talked as an alternative to meet the demand.

IOC and its subsidiary Chennai Petroleum Corp Ltd (CPCL) would be the lead promoters of the Ennore project.