ONGC in Talks to Buy 26% Stake in IOC's Ennore LNG Terminal

ONGC is in talks to buy 26% stake in Indian Oil Corp’s Ennore LNG terminal in the southern Indian state of Tamil Nadu, reports Press Trust of India.

The terminal which will have a capacity of 5 million tonnes per annum (MTPA) is likely to be complete by 2017.

"We held detailed discussions with IOC on stake in Ennore terminal in October last year and hope to conclude a deal shortly," an official from ONGC told Press Trust.

ONGC estimates an unmet demand of 21.5 million standard cubic meters per day (mmscmd) in the Ennore catchment area which will rise to 41.7 mmscmd in 10 years. Overall in southern India, it sees an unmet demand of about 90 mmscmd, adds Press Trust.

"Power and fertiliser plants in and around Ennore need 12-14 mmscmd of gas which is equivalent to 2.5 million tonnes of LNG," the official said.

By taking equity, ONGC wants right to bring in at least a quarter of the LNG at Ennore and market it.

Sign-up for our free weekly newsletter update via email here