The Indian government has approved a ₹3,400 crore expansion of IndianOil’s Ennore LNG terminal near Chennai, doubling its regasification capacity to 10 million tonnes per annum (MTPA).

The project, which will be completed within 54 months without acquiring additional land, is designed to bolster natural gas supply across South India while enabling LNG bunkering and exports to neighboring countries.

The approval aligns with the Centre’s broader strategy to increase natural gas’s share in India’s primary energy basket.

By expanding existing infrastructure rather than greenfield development, the project aims to accelerate capacity additions while minimizing land acquisition delays.

The terminal’s enhanced capabilities will also support maritime fueling operations, positioning the facility as a regional hub for LNG trade.

This development follows recent moves by IndianOil to diversify its energy portfolio, including a memorandum of understanding with NLC India Limited to develop large-scale renewable energy projects in Tamil Nadu.