IOC scouting for 3rd partner for LNG terminal

IndianOil and Chennai Petroleum Corporation is setting up the five Million metric tonnes per annum (MMTPA) capacity terminal for supply of regassified natural gas. CPCL and IOC have signed an agreement for supply of LNG.

"For this project we are definitely looking for a partner.

Right now we are talking to many companies who can become our partner", IOCL Chairman R S Butola told reporters after announcing group company Chennai Petroleuem Corporation Ltd`s results.

Stating that the project was "well on course", he said they have not taken any decision on identifying the partner. "We have not taken any decision on it. But the project is currently on hand", he said.

For the project, CPCL is gearing itself to receive Natural Gas for its heaters and boilers and also for its power plant and hydrogen generation units.

Butola also clarified they are looking for a partner who has experience in setting up an LNG plant.

Referring to the results, Balachandran said CPCL reported net profits for the fourth quarter ending March 31, 2011 at Rs 314.11 crore against a net loss of Rs 61.06 crore in the same period of the previous year.

For the year ending March 31, 2011 the net profits dipped to Rs 511.52 crore as against Rs 603.22 crore in the same period of prevoius year.

"The marginal loss was due to the one time tax refund of Rs 149 crore. Even if you remove that amount we have reported profits", he said on the dip in the net profits.

IOCL Chairman Butola also praised CPCL for its results, saying the company has "bounced back to report profits.`Fiscal 2010-11 has ended significantly in many ways for CPCL".

Net sales for the quarter ending March 31 2011 stood at Rs 10,310.34 crore as against Rs 5,465.26 crore reported in the same period of the previous year.

For the year ending March 31, 2011 net sales grew to Rs 33,107.82 crore from Rs 24,972.63 crore reported in the same period of the previous year, he added.

At the Board meeting today, the directors recommended a dividend of 120 per cent for 2010-11, he added.