Synopsis: IndianOil LNG (IOCL) has received approval for the expansion of its Ennore LNG Terminal. This article covers key infrastructure additions, economic impact and role to strengthen South India’s natural gas.
IndianOil LNG has been granted clearance of ₹3,400 crore for Ennore LNG Terminal in Tamil Nadu for expansion. This will boost India’s natural gas infrastructure, storage and regasification capacity of the terminal, which will facilitate the transport of gas supplies to the Port to meet the growing demand for gas in southern India and contribute to the country’s transition towards a cleaner and more secure energy landscape.
- Project: Expansion of the IndianOil LNG terminal at Ennore, Tamil Nadu.
- Project Cost: ₹3,400 crore.
- Current capacity: 5 MMTPA (metric tonnes per annum)
- Expanded capacity: The capacity will be expanded to 10 MMTPA, to double the LNG handling capacity of the terminal.
- Objective: To enhance LNG import, storage and regasification facilities to ensure availability of gas supply to city gas distribution networks, industries, refineries, power plants etc. in the south for the consumers of gas.
What is to be added in the expansion?
Construction of a second full-containment LNG storage tank of 1,80,000 cubic metres (m³), bringing the total LNG storage tank capacity of the terminal to 3,60,000 m³. Upgrading the regasification plant to 5 MMTPA to 10 MMTPA, allowing the terminal to handle much larger quantities of LNG.
Installing more LNG vaporizers, cryogenic pipelines, high pressure pumps and utility infrastructure for the expanded throughput.Investment in marine and jetty works, such as adaptation work due to the increased amount of LNG vessels and the requirements for better unloading efficiency. Supporting infrastructure including electrical systems, firefighting facilities, control systems and other balance-of-plant systems for the increased terminal operations were developed.
Why is the expansion important?
- Meets the riding demand: The region of Southern India is seeing industries, city gas distribution (CGD) networks, power plants and refineries consume more and more gas.
- Increases energy security: With the expansion of LNG infrastructure, India will have larger import and storage capacities, ensuring a more reliable supply of gas.
- Supports industrial development: The extension of the terminal will enable the stable supply of natural gas to manufacturing belt, fertiliser plant, petrochemical industries and commercial consumers in Tamil Nadu and neighbouring states.
- Enhances LNG infrastructure: The project is a complementary project to the gas pipeline and city gas distribution network expansion in India, which will support the rise of natural gas in the country’s energy mix.
Economic & Regional Impact
- The investment, worth ₹3,400 crore, is projected to have a positive impact on the economic growth of Tamil Nadu, both in terms of employment generation during construction and in operation.
- The terminal expansion will help to supply LNG to industries, refineries, power plants and CNG, which will boost industrial development in southern India including Tamilnadu, Andhra Pradesh, Karnataka, Telangana and Kerala.
- The project at Kamarajar Port (Ennore) will help to strengthen the Port’s energy gateway position, increase the efficiency of LNG import and enhance the energy infrastructure of the country by the sea.
- The extra capacity will also align with the growth of the country’s gas pipeline infrastructure to help ensure gas supply in the country, lessen supply constraints.
- The terminal is connected via the Ennore-Tiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin (ETBPNMT) natural gas pipeline for supplying the regasified LNG to industries, refineries, power plants and city gas distribution systems.
- Expansion of LNG infrastructure is a national priority as India aspires to ramp up the proportion of natural gas in the primary energy mix from the current around 6% to the target of 15% by 2030.
Conclusion
The Ennore LNG Terminal is a major step in India’s natural gas infrastructure and its expansion will further boost the country’s energy supplies, import, storage and regasification facilities, thereby enhancing energy security and securing industrial development in the southern part of India.
