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Centre approves INR 3,400 crore upgrade of Ennore LNG infrastructure

#Infrastructure News#Infrastructure#India
Synopsis

The Centre has approved an INR 3,400 crore expansion of IndianOil LNG's Ennore terminal in Tamil Nadu, doubling its regasification capacity from 5 MMTPA to 10 MMTPA. The project will be executed within the existing 128-acre facility at Kamarajar Port and is aimed at meeting rising natural gas demand across southern India. The expansion is expected to support industrial consumption, city gas distribution networks, power generation and other energy-intensive sectors. It will also strengthen India's gas import, storage and transmission infrastructure while improving long-term energy security and regional supply reliability.

The Central government has approved the INR 3,400 crore expansion of IndianOil LNG Private Limited's Ennore Liquefied Natural Gas (LNG) terminal in Tamil Nadu, paving the way for a major upgrade of gas infrastructure on India's east coast. The project will increase the terminal's regasification capacity from 5 million metric tonnes per annum (MMTPA) to 10 MMTPA, supporting growing industrial and city gas demand across southern states. 
The expansion will be undertaken within the existing 128-acre Ennore LNG terminal located inside Kamarajar Port near Chennai, eliminating the need for additional land acquisition. According to project documents, the upgraded facility is expected to be commissioned within 54 months from the date of board approval. The investment includes new LNG handling infrastructure, regasification facilities and associated utilities required to double the terminal's capacity. 
IndianOil LNG Private Limited, a joint venture led by Indian Oil Corporation, commissioned the Ennore terminal in 2019 as the first LNG import facility on the east coast of southern India. The terminal was developed to improve access to natural gas in Tamil Nadu, Karnataka and parts of Andhra Pradesh, where gas infrastructure has historically remained limited. The facility currently imports, stores and regasifies LNG before supplying it through pipeline networks to industries, power plants and city gas distribution systems. 
The expansion is expected to strengthen fuel availability for major industrial clusters, including refineries, fertiliser plants, petrochemical units and manufacturing facilities in the region. Increased LNG handling capacity is also expected to support the ongoing rollout of piped natural gas (PNG) connections and compressed natural gas (CNG) infrastructure under India's city gas distribution programme. The existing evacuation network linked to the terminal extends across Tamil Nadu while also serving customers in neighbouring states through pipeline connectivity. 
Project documents indicate that all proposed facilities will be developed within the existing terminal complex while retaining the established green belt covering more than 42 acres. Environmental studies submitted for regulatory approvals state that no additional land will be required and that the expansion will utilise available infrastructure within the terminal premises. 
The Ennore expansion forms part of the government's broader strategy to increase the share of natural gas in India's energy mix by strengthening LNG import and regasification capacity. Industry officials expect the upgraded terminal to improve supply reliability for southern markets, support industrial investment and reinforce energy infrastructure across the region. Once operational, the project will significantly enhance the east coast's LNG handling capability while improving connectivity between import infrastructure and downstream consumers. 
Source: Indian Oil Corporation ltd.

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