The Indian Oil Corporation (IOC) has decided to invest between 26 and 50 per cent in the equity of these joint venture companies after ascertaining the requirement of the funds independently, Indian Oil Corporation chairman MA Pathan told the press persons on Tuesday.

To promote joint ventures the entire liquefied natural gas (LNG) project has been divided into shipping, terminals and regassification, pipeline network, marketing and distribution and power project.Pathan said that the corporation has drawn up an extensive plan to enter the LNG sector in a big way. While KIOLC will set up an LNG terminal in the east coast, Indian Oil Corporation.has tied up with Enron to market from Dabhol's LNG terminal, he said.

Recently, KIOLC, a consortium led by Indian Oil Corp, along with Petronas of Malaysia and the Cocanada Port Company, has obtained a Letter of Support (LoS) from the government of Andhra Pradesh. As per the LoS, the state government has fixed a target of 180 days for submitting a detailed feasibility report. The project will be implemented in three or more phases and financial closure will be announced in 12 months, said Subir Raha, director of Indian Oil Corporation. The consortium has already appointed Crisil to undertake market research and evaluate the demand for liquefied natural gas (LNG) and other products within Andhra Pradesh and adjoining states, Raha explained. The Indian Oil Corporation (IOC)-led consortium, will float five separate joint ventures to execute various components of the project.