IOCL Issues Tender for LNG Supplies to Meet Growing Demand in India

NEW DELHI- Indian Oil Corporation (IOC) has issued a tender seeking 8 liquefied natural gas (LNG) cargoes for its Dhamra LNG terminal in Odisha. The cargoes are required to be delivered on a delivered ex-ship (DES) basis between April and December 2023.

IOC is India's largest oil refining and marketing company and is actively expanding its presence in the LNG sector. The Dhamra LNG terminal, which was commissioned in 2021, has a capacity of 5 million tonnes per annum (mtpa) and is expected to play a significant role in meeting the country's growing demand for natural gas.

The tender seeks to procure a total of 0.6 million tonnes of LNG, with each cargo ranging from 60,000 to 75,000 tonnes. The cargoes are required to be sourced from global suppliers and delivered to the Dhamra LNG terminal.

IOC's move to procure additional LNG cargoes for the Dhamra terminal comes amid a surge in demand for natural gas in India, driven by the country's push towards cleaner fuels and the growth of the industrial sector. The government's focus on expanding the use of natural gas is expected to create new opportunities for companies in the LNG sector.

The Dhamra terminal is strategically located on the east coast of India and is well-connected to major industrial clusters in the eastern and northern parts of the country. The terminal has already received LNG cargoes from global suppliers, including Qatar and Russia.

IOC's efforts to secure additional LNG supplies for the Dhamra terminal are expected to strengthen the company's position in the LNG market and help meet the growing demand for natural gas in India. The company is also actively exploring opportunities to set up new LNG terminals in other parts of the country.

In conclusion, the tender issued by Indian Oil Corporation for 8 LNG cargoes for its Dhamra terminal is a positive development for the Indian LNG sector. The move is in line with the government's focus on expanding the use of natural gas and is expected to create new opportunities for companies in the LNG supply chain. The Dhamra terminal is well-positioned to play a key role in meeting India's growing demand for natural gas and is expected to contribute to the country's energy security in the long run.

Read Also : Numaligarh Refinery Limited achieved milestone