In a stock exchange filing, IOC said its Board had in October last year had approved setting up a 5 million tonne LNG project at Ennore through a joint venture company.
"The cost of the project is estimated at Rs 5150 crore. The project would be implemented through a joint venture company and not directly by IndianOil," it said.
IOC would hold 45 per cent stake in the project while Tamil Nadu government enterprise, TIDCO will have 5 per cent holding. Balance 50 per cent will be held by financial institutions.
"The joint venture company will be initially incorporated with a seed capital of Rs 1 lakh... of which IOC's investment would only be Rs 45,000 at present," the said.
As the project activities progress, the strategic joint venture partners would be identified and inducted as equity partners.
"The project related activities are yet to commence," IOC added.
Ennore will be the third LNG terminal on the east coast with state-owned GAIL India Ltd building a facility at Kakinada in Andhra Pradesh and Petronet LNG Ltd setting up a 5 million tons facility at Gangavaram in Andhra Pradesh.
LNG is a gas that is cooled down to liquid form and takes up just 1/600th of the volume in its gaseous state, thereby easing transportation by sea.
IOC plans to lay a 1,175 km of pipelines to transport the gas imported at Ennore LNG terminal to customers.
It has made an application to sector regulator Petroleum & Natural Gas Regulatory Board (PNGRB) for laying natural gas pipeline from Ennore to Nagapattinum in Tamil Nadu with spurlines to Madurai, Tuticorin and Bengaluru.
The company, however, did not give timelines for completion of the projects.

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