GAIL India on Thursday said it is in talks with the A V Birla Group to pick up 26 per cent stake in the Ennore LNG import terminal project in Tamil Nadu.

"We have opened dialogue with the Birla Group for taking a leading role in setting up the 5 million tonnes capacity LNG terminal-cum-power project at Ennore," GAIL chairman and managing director Proshanto Banejree told reporters in New Delhi.

• GAIL plans Rs 4000 cr investment

The Dakshin Bharat Energy Consortium, comprising Grasim Industries (an A V Birla Group company), CMS Energy, Unocal, Woodside Petroleum and Siemens Project Ventures, had been awarded the letter of intent for the project after a global bidding. But the project has not yet taken off.

"GAIL is ready and keen to assume a leading role," Banerjee said.

Against the current allocation of 6 million standard cubic metre per day of gas, only 1.4 mmscmd was being supplied in Tamil Nadu. The current deficit of 4.6 mmscmd is besides the 25-30 mmscmd potential customers in industry, power and desalination plants.

Banerjee cited the declining domestic gas supply outlook and said the deepwater port at Ennore was compatible for LNG imports. Besides, LNG could be sourced from multiple countries like Malaysia, Indonesia and Australia.

GAIL proposed a pipeline from Coimbatore-Erode-Salem-Dharampuri besides the Chennai-Bangalore and Chennai-Tuticorin lines planned to transport Regassified-LNG, sources said. Besides, there is an existing local network of 163 kms (Kuttalam, Narimanan, Kovilallapal, Perungulam, Bhuvanagiri).