Kerela Wants GAIL's Kochi-Kayamkulam Pipeline Extended to Thiruvananthapuram

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Researched by Industrial Info Resources India (Delhi, India)--To help set up the required infrastructure for a city gas distrbution (CGD) network in Thiruvananatpuram, the state government of Kerala has requested the ministry to ask GAIL (India) Limited (BSE:532155) (New Delhi, India) to extend its planned Kochi-Kayamkulam pipeline to Thiruvanantpuram.

The proposed 24-inch-diameter pipeline project is planned to supply natural gas to NTPC Limited's (BSE:532555) (New Delhi) Kayamkulam power plant. This pipeline and the 30-inch Kochi-Bangalore-Mangalore pipeline are expected to be commissioned by 2013.

As GAIL has been authorized to lay the pipeline, the chief minister of the state wanted the Petroleum Ministry to persuade the gas major to extend the pipeline to Thiruvanantpuram so that infrastructure could be created for setting up the CGD network in the capital. The chief minister also requested the ministry to ask the gas major for speedy implementation of the pipeline from Kochi to Kayamkulam.

The work on GAIL's Kochi-Kayamkulam undersea pipeline hit a stumbling block when the NTPC was unwilling to sign the gas transportation agreement until the government allocated domestic gas for its 360-megawatt (MW) power plant in Kayamkulam to offset high LNG prices.

As Thiruvanantpuram prepares to implement its CGD network, the state hopes that all of the bottlenecks relating to the Kochi-Kayamkulam pipeline will be removed.

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