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Indian Oil Corp. to lay east coast LNG pipeline

LNG Industry,

State-owned Indian Oil Corp. (IOC) has announced plans to lay 1175 km of pipelines to transport liquid gas from the proposed Ennore LNG terminal in Tamil Nadu, on the Bay of Bengal coastline.

The company has submitted an Expression of Interest (EoI) to the Petroleum & Natural Gas Regulatory Board (PNGRB), which as the sector regulator authorises entities to lay oil and gas pipelines in the country. IOC is planning a natural gas pipeline from Ennore to Nagapattinum in Tamil Nadu with spurlines to Madurai, Tuticorin and Bengaluru.

The Ennore port is set to host the company’s liquefied natural gas (LNG) import terminal, which will have an initial capacity of 5 million tpy by 2016. This figure could then expand to 10 - 15 million tpy in future.

IOC in the application said "it was interested in laying natural gas pipeline from the terminal to various demand centres in southern states to evacuate LNG".

The main Ennore-Puducherry-Nagapattinam pipeline will be 325 km in length and 28 in. in dia., while the propsed 24 in. spurlines will total 857 km.

In its application, IOC stated the pipelines will have a carrying capacity of 18.35 million m3/d of natural gas. The pipeline will be injected with natural gas at Ennore for delivery to industries in Thiruvallur, Bengaluru, Puducherry, Nagapattinam, Trichy, Madurai, Ramnathapuram, Tuticorin and other centres along the route.

The pipeline will also feed demand centres along the route, including Chennai, Cuddalore, Villupuram, Kanchipuram, Vellore, Madurai, Chittoor and Kolar.

IOC said the 12.5 million m3/d of demand has been assessed on the pipeline route for 2015-16, which will increase to 18.35 million m3/d in 2024-25, and 32.10 million m3/d in 2039-40.

The Rs. 4320 crore LNG import facility at Katupalli (Ennore) is expected to be built by 2016. Tamil Nadu Industrial Development Corporation (TIDCO) may take a 5 - 10% stake in the project.

Ennore will be the third LNG terminal on the east coast with state-owned GAIL India Ltd building a facility at Kakinada in Andhra Pradesh and Petronet LNG Ltd setting up a 5 million t facility at Gangavaram in Andhra Pradesh.

Edited from various sources by Cecilia Rehn.

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