The project will come up at 132 acres of land in Ennore though the project value has not been disclosed.
IOC chairman R S Butola was reported by ENS Economic Bureau as saying that the LNG terminal will be in modular form, with an initial capacity of five million tonne per annum (tpa) and can be doubled later.
"They (TIDCO) will take a small per centage stake between 5-10 percent in the project," Butola said.
"The project also got some fiscal incentives from the state government for the project."
Currently, the mode of funding the project cost through a ratio of debt to equity is being worked out.
Indian Oil Corporation is looking to award contracts for the project in the next three months.
The terminal will use Ennore port to handle LNG and IOC will import LNG from various sources.
When completed by 2015-end, the LNG terminal project will meet the piped gas demand in Southern India which now does not have adequate supplies of piped gas.
