Oil India May Set Up LNG Terminal in India

State owned Oil India (OIL) has plans to diversify into the sale of liquefied natural gas (LNG) within India.

A report in Deccan Chronicle newspaper said that the company is looking to set up two 5 million tonnes per annum (mtpa) capacity each LNG terminals one on the east coast and the other on the west coast.

“Based on the report we are in the process of selecting a location on the east coast that would most probably be Vizag or Nellore. Whereas, our latest addition to the portfolio, the Mozabique block would require another terminal on the west coast. We would look at various possibilities such as tying up with existing players or with new players on the west coast,” said TK Ananthakumar, director finance of OIL.

Late last month, Oil India along with ONGC bought Videocon’s 10% stake in Rovuma Area 1 Offshore Block in Mozambique.

The company at a later stage may even look at increasing its stake in the Mozambique block, Deccan Chronicle said.