The Ministry of Environment, Forest and Climate Change (MoEFCC) has granted environmental clearance for IndianOil LNG Pvt Ltd’s (IOLPL) ₹3,400-crore expansion of its LNG import and regasification terminal at Ennore, North Chennai. The approval paves the way for the company to double the terminal’s liquefied natural gas (LNG) regasification capacity from five million tons per annum (MTPA) to 10 MTPA, significantly strengthening natural gas infrastructure in southern India.
Expansion to Meet Rising Natural Gas Demand
According to the company’s submission to the Environment Ministry, the expansion has been planned to address the growing demand for natural gas across the Ennore region and surrounding industrial corridors. Once completed, the project will increase the terminal’s regasification capacity from 20 million standard cubic metres per day (MMSCMD) to 40 MMSCMD. This additional capacity is expected to improve the availability of regasified LNG (RLNG) for industries and other major consumers across southern India.
India’s First East Coast LNG Terminal
IndianOil LNG Pvt Ltd, a joint venture of Indian Oil Corporation Ltd, commissioned the Ennore LNG terminal in 2019, following the start of construction in 2015. The facility was originally designed with a five MTPA capacity, while incorporating provisions for a future expansion to ten MTPA. With environmental clearance now in place, the company can proceed with the long-planned capacity enhancement to meet the region’s increasing energy requirements.
Boost for Southern India’s Gas Infrastructure
The expanded terminal is expected to substantially improve the supply of regasified LNG to industrial consumers across Tamil Nadu, Andhra Pradesh, and Karnataka. By increasing gas availability, the project will strengthen the regional natural gas network, support energy-intensive industries, and facilitate greater adoption of cleaner fuels. As reported by newsonprojects.com, the expansion aligns with India’s broader strategy to increase the share of natural gas in the country’s energy mix while supporting industrial growth and the transition toward lower-carbon energy sources.
