Indian Oil to rope in IDFC and ICICI as partners for Ennore LNG terminal.

Government-owned refiner and oil marketing company Indian Oil Corporation (IOC) will rope in financial institutions IDFC and ICICI as strategic partners for its proposed Rs. 5,151 crore liquified natural gas (LNG) terminal at Ennore in Tamil Nadu, two sources in the know told FE.

'The joint venture company has been set up. The issue to rope in IDFC and ICICI as strategic partners would be placed before the board shortly.

The exact stake of each partner would be finalised in the next few days,' said one of the sources.

B Ashok, chairman of IOC, said the PSU would hold 50% stake in the JV project, while other partners would have the rest. He however, did not divulge the name of the strategic partners IOC is negotiating with. Tamil Nadu Industrial Development Corporation (Tidco), a state government agency, would also have a marginal stake.

In 2014, IOC’s board gave its go-ahead for the 5 million tonne per annum (mtpa) terminal at Ennore in the Kamarajar Port. This is line with the company’s long-tern strategy eyeing bigger business in gas marketing in its endeavour to diversify and grow as an integrated energy company.

The government-owned company is in talks with as many as 12 players including Russia's Gazprom to tie up long-term LNG supply and offer equity participation too. 'We are talking to Gazprom to buy about 2.5 mtpa of LNG on long-term deal. There is also an option to offer equity participation. Both could be a combined deal, as it happens globally. But nothing is finalised till now,' said the second source.


THE FINANCIAL EXPRESS