Indian Oil approves Rs 2,449 crore for Kochi-Kanyakumari-Thoothukudi natural gas pipeline development

Indian Oil Corporation Limited board approved an investment of Rs 2,448.70 crore for the development of the Kochi-Kanyakumari-Thoothukudi Natural Gas Pipeline (KTPL), the company said in a regulatory filing on Monday.

The 424.65-km pipeline will connect Kochi in Kerala with Thoothukudi in Tamil Nadu and will have a system capacity of 6.84 million metric standard cubic metres per day (MMSCMD), including common carrier capacity.

Also read: GAIL looks to sell its stake in US shale business


At least 1.71 MMSCMD of the total capacity will be available as common carrier capacity.

Shares of Indian Oil Corp Ltd. were trading at Rs 137.25 around 14:01 on BSE, with a marginal rise of Rs 0.45 (+0.33%).

The project is part of efforts to strengthen natural gas transmission infrastructure in southern India. The Petroleum and Natural Gas Regulatory Board (PNGRB) had earlier authorised Indian Oil to lay, build, operate and expand the pipeline. The regulator said the proposed pipeline would originate from the Kochi LNG terminal and extend to Thoothukudi, facilitating the transportation of regasified LNG to demand centres across Kerala and southern Tamil Nadu.

The pipeline is expected to support the expansion of city gas distribution networks and supply natural gas to industrial consumers, power plants and other downstream users in the region, according to PNGRB.

Also read: Natural gas imports rise despite price surge

The proposed pipeline will also strengthen connectivity with the existing natural gas pipeline network in southern India. IndianOil currently operates the Ennore-Tuticorin-Bengaluru R-LNG Pipeline, which has an installed capacity of 34.67 MMSCMD and supplies gas to industrial customers and city gas distribution networks in Tamil Nadu.