According to company’s Annual Report 2014-15, the Corporation is also currently setting up its maiden 5-million tonnes per annum LNG import, storage and regasification terminal at Ennore, which is targeted for completion in 2016-17.

“Steps have been initiated to have a significant share in the country’s gas infrastructure through participation in upcoming gas pipelines (in JVs) and planned import storage and degasification terminal of 5 MMTPA LNG with provision for future expansion to 10 MMTPA at Ennore near Chennai,” said in the Annual Report.

In 2012, IOC signed an agreement with Tamil Nadu Individual Development Corporation (TIDCO) to set up a Rs 4,500 crore liquefied natural gas (LNG) terminal in Chennai. The initial capacity of the facility will be five million tonne per annum (tpa).

When the MoU was signed the company said the LNG terminal will be completed by 2015.

The company also said it is talking to three foreign companies for the LNG terminal project and said it is looking for shell gas in US and other countries.

Southern India does not have adequate supplies of piped gas and the project will address this gap, earlier the company said. The project is coming up on 132 acres in Ennore here.

For over 50 years IOC primarily has been focusing on hydro carbon sector, as gas is emerging as alternate fuel for the century, IOC sees good opportunity to expand the portfolio, it said.

IOC, India’s biggest retailer of fuel for transport and industrial purpose caters to almost half of the country’s demand, aims to supply clients who want to replace fuel oil and naphtha with gas.

The project will mainly cater to industries and households in Tamil Nadu, while to some extent it will also cater to customers in Bangalore and Andhra Pradesh markets, he said.

While the initial capacity of the Ennore terminal will be 5 MTPA the company over the years planning to expand it to 10 MTPA.