The Union Ministry of Environment, Forest and Climate Change (MoEFCC) has granted environmental clearance for the ₹3,400-crore expansion of IndianOil LNG Pvt Ltd’s (IOLPL) Ennore LNG terminal in North Chennai, according to a company filing. The approval will allow the terminal to double its regasification capacity from 5 million tonnes per annum (MTPA) to 10 MTPA, the filing stated.
Expansion Details
The expansion project, valued at ₹3,400 crore, will increase the facility's regasification capacity from 20 million standard cubic metres per day (MMSCMD) to 40 MMSCMD, the company said in its filing with the Environment ministry. The terminal was originally commissioned in 2019 after construction began in 2015, with an initial capacity of 5 MMTPA and provisions for future expansion to 10 MMTPA. All work will be executed within the existing terminal premises at Kamarajar Port in Ennore, requiring no additional land acquisition, according to the filing. Completion is expected in 54 months.
| Key Parameter | Current Capacity | Post-Expansion Capacity |
|---|---|---|
| Regasification (MTPA) | 5 | 10 |
| Regasification (MMSCMD) | 20 | 40 |
| Investment (₹ crore) | — | 3,400 |
Demand Drivers
Rising natural gas demand in the Ennore catchment area is driving the expansion, the company stated. The enhanced terminal will supply regasified LNG (RLNG) to industries across Tamil Nadu, Andhra Pradesh and Karnataka. End-users will include power plants, fertilizer units, industrial consumers, and city gas distribution networks, which provide piped natural gas for households and compressed natural gas for the transport sector, the filing detailed.
Strategic and Export Implications
The expansion supports the Centre's objective of increasing natural gas's share in India's energy mix from about 6% to 15% by 2030, sources said. Beyond meeting growing domestic demand, the project is expected to create opportunities for LNG bunkering, break-bulk operations, and exports to neighbouring countries such as Sri Lanka, Bangladesh and Myanmar, according to sources. Increased RLNG supply from the Ennore terminal will enhance energy security for southern India and strengthen India's position as a regional LNG hub. Commodity traders and procurement teams should monitor the terminal's ramp-up timeline as additional capacity could influence Asian LNG spot prices and widen arbitrage opportunities for east-coast delivery.
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