Indian Oil may rope in Petronet for Ennore project

Indian Oil Corporation Ltd (IOC) is likely to rope in Petronet LNG Ltd (PLL) as partner for its proposed liquefied natural gas (LNG) import and re-gasification terminal at Ennore, Tamil Nadu.
The IOC board is expected to consider the proposal on Monday. Subsequent to the Board approval, a memorandum of understanding (MoU) between the two entities is expected to be inked, sources said.
Sources told Business Line that bringing PLL into the project would help in sourcing LNG. Non-availability of LNG under long-term contracts has been a major deciding factor in such projects, the sources added. In fact, IOC has also been pursuing various LNG suppliers for long-term supply.
Only after an umbrella MoU is inked will the two companies define the exact role of each other in the project, sources said. While the companies remained tight-lipped on the proposal, indications are that besides the LNG terminal project, PLL would look for a larger role in its joint venture with IOC, including certain downstream activities in related areas.