Indian Oil’s board has approved taking up equity in the 5 million tonnes LNG terminal expected to be commissioned by March, the company said in a statement. The terminal will be connected to the existing pipeline network of Gujarat State Petronet Ltd (GSPL), a unit of GSPC, at Anjaar in Gujarat.

Last year, Indian Oil had agreed to buy stake in another LNG terminal being developed by Adani Enterprises at Dhamra, Odisha.

“As the second largest player in natural gas in the country, Indian Oil is making significant investments in natural gas infrastructures and marketing in line with the country’s changing energy mix,” the company said.

“We already have investments across the gas value chain, from LNG import terminals to city gas distribution networks, the major among them being a 5-million metric tonnes per annum LNG import terminal at Kamarajar port near Chennai, scheduled for commissioning in 2018-19,” Sanjiv Singh, chairman of Indian Oil, said in the statement.

The board of Indian Oil has also approved capacity expansion of its Gujarat refinery from 13.7 million tonnes to 18 million tonnes per annum at an estimated cost of Rs 15,034 crore. The expansion would help meet the growing demand for products in the region, the company said.

“The new refinery configuration proposed will take into account the likely disruptions in the fuel supply/demand scenario in the future and will have built-in flexibility in its operations for strong integration with downstream petrochemical units,” Singh said.

Indian Oil plans to raise the combined capacity of its 11 group refineries from the current 81 million tonnes per annum to over 100 million tonnes in the next five years through brownfield expansions.

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