Chennai, Nov 12 (IANS): Oil marketing company Indian Oil Corporation's (IOC) liquefied natural gas (LNG) terminal near here is expected to go on stream by the third quarter of 2017-18, a top company official said Wednesday.

Speaking to reporters here, IOC chairman B. Ashok said the board has approved the revised project cost for the five million tonne per annum (MTPA) LNG terminal at Rs.5,150 crore up from the earlier estimate of Rs.4,500 crore.

The company has already tied up to procure two million tonnes and is mulling strategic deals for sourcing.

Ashok said IOC has tied up with the Canadian province of British Columbia for two million tonnes.

He said IOC would look at long-term as well as spot sourcing deals for LNG.

The company is also planning a pipeline project from Paradip to Vishakapatnam.

Speaking about the Paradip refinery, Ashok said around 97 percent of the work has been completed and the first unit is expected to go on stream by next March.

He said the company is also setting up a 1,200 km pipeline to carry LNG in Tamil Nadu involving an outlay of around Rs.3,000 crore.

Ashok said IOC would increase its rural petrol outlets by 1,000 to 7,000 by next March.