Kamarajar Port Ltd. (KPL) at Ennore and Indian Oil Corporation (IOC) are likely to sign a concession agreement in February for a rS. 5,150-crore LNG import terminal, reports a business daily.
The agreement is likely to be signed during the Maritime India Summit 2016, to be held in Mumbai.
“We are in the process of finalising the draft concession agreement,” KPL Chairman MA Bhaskarachar told the daily.
The LNG terminal, expected to become operational by early 2018, will have a capacity of 5 million tonnes per annum for storage and regasification.
IOC and KPL had signed a Memorandum of Understanding (MoU) to set up the terminal on 1st March, 2014.
The Union Cabinet has allowed KPL to lease land for the LNG terminal being built by a joint venture led by IOC.
IOC had obtained environment clearance and it is in the process of selecting EPC contractors.
Moreover, IOC plans to build a captive jetty at the Kamarajar port to handle petroleum, oil & lubricants, LPG products and lube oil base stock in bulk in Tamil Nadu and neighbouring states.
IOC and KPL signed an MoU for this project on Monday.
The jetty will achieve a capacity of 3-3.5 MMTPA by fifth year of operation.