CHENNAI : The ambitious imported liquefied natural gas (LNG) storage and re-gasification terminal built by Indian Oil Corporation Limited (IOCL), the nation’s largest fuel retailer, at a cost of `5,151 cr inside Kamaraj Port Limited in Ennore, is ready for commissioning later this month. The Union Environment Ministry cleared the last bottleneck by granting Coastal Regulation Zone (CRZ) clearance to lay gas evacuation pipeline through Ennore creek wetlands.
Out of a total 22.656 km of underground pipeline being laid under the common corridor pipeline project connecting the LNG terminal and Manali industrial area, 634 metres of pipeline area fall in CRZ-I (116 meters) and CRZ-III (518 meters) for which CRZ clearance was mandatory.
Though, Expert Appraisal Committee of Union Environment Ministry had recommended IOCL’s proposal for CRZ clearance, subject to conditions, in November, 2017, the ministry accorded the clearance on October 25, 2018. The ministry, while giving clearance, asked IOCL to install an in-built leak detection system, prepare emergency response and disaster management plans as per Petroleum and Natural Gas Regulatory Board (PNGRB) guidelines before commissioning the pipeline.
A senior officer of IOCL’s Southern Region Pipelines told Express, that, having received clearance, work on the pipeline would be completed by November 20. “The end-to-end i.e pipeline connections from terminal to anchor customers in Manali industrial area will be completed by November 15-20. We are hoping to commission the LNG terminal by the month end,” the official said.
The official said the company had already tied-up off-take agreements for about 2 million tonne gas with about 30 consumers, which include anchor customers such as Chennai Petroleum Corporation Limited, Madras Fertilizers Limited, Manali Petrochemicals, Tamil Nadu Petroproducts Limited in Manali industrial area, to cater to gas demands of the region.
The firm is also working on laying a 1,385 km natural gas pipeline originating from the Ennore terminal to Nagapattinam in Tamil Nadu via Puducherry. The fuel retailer is also laying branch pipelines to Madurai, Thoothukudi and Bengaluru to meet the demand from multiple LNG consumers.
Meanwhile, the commissioning of LNG terminal will also fast-track the city gas distribution (CGD) for which PNGRB has awarded bids. IOCL on its own won rights to seven cities, including Coimbatore and Salem in Tamil Nadu, while Torrent Gas Private Limited has made the winning bid for Chennai. IOC official say the natural gas can economically replace naphtha, and fertiliser industries can directly use natural gas as feedstock for production of urea. In other industries, it would be used to generate power or run furnace.
A official played down concerns raised by environmentalists and Ennore fisherfolk, stating the pipeline is being laid underground in entire stretch at a minimum depth of 1.5 metres. At sensitive areas such as Ennore creek, it is being laid through trenchless, horizontal drilling method, to a minimum depth of 8 metres. The underground pipeline is protected through 3 LPE coating externally and Epoxy coating internally in addition to cathodic protection and 24/7 maintenance.