Tokyo, June 29, 2015 - Mitsubishi Heavy Industries, Ltd. (MHI) has received an EPC (engineering, procurement and construction) order from Indian Oil Corporation Ltd. (IndianOil), India's largest oil company, to construct two LNG (liquefied natural gas) storage tanks. The LNG tanks will be the main facility at the first LNG receiving terminal to be constructed on India's east coast. This is also the first LNG storage tank order that MHI has received from India. Construction of the tanks is slated to begin in July of this year; completion is scheduled for the spring of 2018.
IndianOil is India's flagship national oil company and handles refining, pipeline transportation and marketing of petroleum products, as well as production of downstream petrochemical products. The company employs about 34,000 people and accounts for approximately 31% of national refining capacity and 49% of its petroleum product market share. It is the leading Indian Corporate in Fortune's prestigious 'Global 500 listing' of the world's largest corporates, ranked at the 96th position in the year 2014.
MHI has abundant expertise in the design and construction of LNG receiving terminals, storage tanks and carriers. Responding to growing global demand for energy, the company is actively engaging in LNG-related projects. The latest order from India is a result of these initiatives. In collaboration with MHI Engineering and Industrial Projects India Private Limited (MEIP), an MHI Group company in India, MHI proactively approached the Indian LNG terminal project from its initial stage.
In India, LNG demand is expected to increase in tandem with the nation's steadily growing economy, and many projects related to LNG receiving terminals and storage tanks are planned. Going forward, MHI will continue to proactively engage with these projects in India, and will dynamically explore LNG-related projects in neighboring countries and the Middle East. Through these activities, MHI intends to contribute to energy diversification and the stable supply of energy throughout the region.